Staking
Staking BNB to mint LBNB
Last updated
Staking BNB to mint LBNB
Last updated
Value of stake BNB == Value of minted LBNB The genesis amount of BNB staked will mint the equivalent amount of LBNB as rewards from the nodes have yet to accrue. However, as rewards from validating start to accrue, there would be more BNB vs LBNB. Therefore, the ratio of BNB:LBNB will go up, and minting 1 LBNB will cost more BNB. The amount of LBNB minted upon staking BNB tokens will be equal to the current ratio of LBNB/BNB ratio. For example: There are 1001 BNB staked in the Pool, and 1000 LBNB minted. If the user were to mint 1 BNB, he would be receiving 1000/1001 = 0.9990 LBNB. Similarly, when redeeming BNB from 1LBNB, it would be a similar reverse process based on the ratio of BNB to LBNB. Ceteris paribus, BNB will always be increasing due to the accruing of yield when staking, and the price of LBNB will generally be at a premium of BNB.