Global, 23rd October 2024 – Bitget, the leading cryptocurrency exchange and Web3 company, has announced the launch of its Solana (SOL) liquid staking service, in partnership with Solayer, a leading restaking network on Solana. This service introduces BGSOL, a token that users receive in exchange for staking their SOL assets, providing them with increased flexibility and a broader range of opportunities within the decentralized finance (DeFi) space.
Liquid staking, offered through BGSOL, allows users to stake their SOL while retaining liquidity, a feature that is absent in traditional staking methods. In addition to earning staking rewards, BGSOL holders can engage in other DeFi activities, including trading, lending, or providing liquidity on decentralized platforms. This flexibility makes Bitget's solution particularly attractive for users looking to maximize their asset utility while benefiting from Solana's network performance.
"With the launch of BGSOL, Bitget is taking a significant step in offering more versatile financial solutions. By allowing users to maintain liquidity while earning rewards through staking, we are opening up new possibilities for engagement within the DeFi ecosystem, all built on Solana's growing network," said Gracy Chen, CEO at Bitget.
The latest yield associated with BGSOL is around 8.15%, adjusting based on market and network conditions. Factors such as the overall staking participation across the Solana network and the performance of validator nodes influence the annualized percentage yield (APY). Users can monitor the APY in real time on the Bitget platform, ensuring they stay informed about the current rates.
As staking rewards accumulate, the value of BGSOL increases over time. This means that while the initial exchange ratio of SOL to BGSOL may be equal, the value of BGSOL will surpass SOL as rewards are continuously integrated into the token. Consequently, the longer users hold BGSOL, the greater the potential value growth of their assets. The exchange ratio between SOL and BGSOL is updated in line with Solana's network cycle, typically every 2 to 3 days, providing users with a clear view of their assets' value progression.
"BGSOL brings a new level of flexibility and innovation to the staking mechanism on Solana through Solayer. Users can earn rewards while staying liquid, but also offering priority transaction services towards all Bitget related products on Solana. This collaboration is only the first step in which Bitget and Solayer are exploring to build bluechip infrastructure on Solana" — Rachel Chu, Cofounder at Solayer
BGSOL tokens can be transferred, bought, or sold on the market, and holders will continue to earn rewards from the staking process regardless of how they obtained the tokens. Staking rewards are not directly deposited into users' accounts but are instead reflected in the increasing exchange rate of BGSOL, offering a seamless accumulation process. Users can track their holdings and income through their Bitget account's personal asset page.
Redemption of BGSOL back to SOL is possible at any time, with no restrictions on the quantity. However, network congestion may lead to potential delays in processing. Once redeemed, the corresponding SOL will be issued to the user's account within four days. It is important to note that redeemed SOL will no longer accumulate staking rewards, with only the remaining BGSOL balance continuing to earn rewards.
Bitget's introduction of liquid staking on its platform represents a strategic step in diversifying the staking options available to its users. The flexibility provided by BGSOL empowers users to make the most of their staked assets, enhancing the DeFi experience through seamless integration with the Solana ecosystem.