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What is BSL Staking and How do I do it?

Published on 11/15 2024 21:36

What is BSL Staking and How do I stake BSL?

Introducing BSL Staking

We’re thrilled to introduce BSL Staking, a feature designed to help you earn rewards by staking your BSL tokens. In this post, we’ll explain how BSL Staking works, walk you through the staking process, show you how to withdraw rewards, and explore the opportunities offered by the BSL DAO.

BSL Staking stands out by offering rewards backed by real interest from legitimate lending, primarily in a 1–1 stablecoin, rUSD, and BSL purchased from a decentralized exchange, avoiding token inflation.

Interested in how it works? Awesome! Let’s break down everything about BSL Staking.

What is BSL Staking?

BSL Staking allows you to stake your BSL tokens in the Earn section of the BankSocial App, enabling you to earn potential rewards while keeping full control of your assets. Here’s how it works:

Self-Custody Staking: Your BSL tokens stay in your wallet, giving you full ownership and control. You can stake or unstake for free, aside from a small HBAR fee for Hedera network transactions, ensuring a seamless and hassle-free experience.

Earn Rewards: By staking your BSL, you can earn potential rewards generated from the BSL DAO’s activities, specifically its lending operations with the Social Liquidity Pool (SLP). Each buy and sell transaction of the BSL token carries a 4% fee, which funds the SLP and ultimately can reward stakers.

Why Is BSL Staking Different (and better) than most staking models?

Unlike traditional staking models that often inflate token supply by paying rewards from unreleased tokens, BSL staking stands apart. Our program is backed by the BSL DAO’s legitimate lending initiatives, which generate real interest. Rewards are primarily distributed in rUSD, a stablecoin backed 1:1 by USD, with a smaller portion paid in BSL which is purchased directly off a decentralized exchange, ensuring sustainability and value for our holders.

How to Stake BSL and Withdraw Rewards

Staking BSL in the BankSocial App is simple and user-friendly. Here’s how to get started:

  1. BankSocial App: Log into your account and navigate to the Earn section.
  2. Select BSL Staking: Choose the BSL staking option to begin the process.
  3. Select Your Stake: For the most simple and seamless user experience, $BSL staking is designed to stake your full $BSL balance. Remember that you can unstake your tokens at any time, but note that doing so before the rewards cycle is complete may result in not receiving the full rewards. Also note that while your tokens are staked, you cannot send or sell those tokens until you unstake them.
  4. Confirm Your Staking: Follow the prompts to finalize your staking transaction. Your tokens will be staked, and you’ll start earning rewards as soon as the transaction is confirmed.
  5. Withdraw Rewards: When you’re ready to claim your rewards, simply go back to the staking section and select the withdrawal option. You must be Verifiied® to claim your rewards. Get Verifiied® on the BankSocial App in the settings section. Your earned rewards will be added to your available balance. Your rewards claim will appear in your transaction history, as well.

Q&A

Q: What type of rewards do I receive?
A: $BSL Staking is unique that rewards are based on real life loans that the $BSL DAO lends. As so, the rewards are not simply extra minted tokens, the rewards are paid in $rUSD, a stable coin pegged 1:1 to the US Dollar. Additionally, a small portion of the rewards are paid out in $BSL, and a small portion goes to the BSL DAO SLP. The BSL DAO passed the following distribution rules: https://snapshot.org/#/banksocialdao.eth/proposal/0x627ec545af3969c2a3227679506f651736d2992125e3ff65da72dd58aa1e3316.

These rules can be amended through the BSL DAO proposal and voting process.

Q: When do the rewards get paid out?
A: Staking rewards are paid out on the 5th of every month. Keep in mind that rewards are based on payments of outstanding real life loans — if a borrower does not make their payment on time, the reward would be paid out the following month on the 5th.

Q: What if I don’t want to stake my full $BSL Balance?
A: If you don’t wish to stake your full $BSL balance, you may send your $BSL tokens to another wallet and stake the remaining amount. The BankSocial team created a first of its kind mechanism to workaround the 4% transfer tax available in the BankSocial App, so you are able to make this transfer without any penalty.

Q: Where do the rewards come from?
A: The rewards for staking BSL are generated through the activities of the BSL DAO. When the DAO lends from the Social Liquidity Pool (SLP), stakers can share in the potential rewards. Additionally, every buy and sell transaction of the BSL token includes a 4% fee, which funds the SLP and contributes to the reward pool for stakers. See flowchart below:

Q: How do I get involved in the BSL DAO?
A: To participate in the BSL DAO, you can begin by staking your BSL tokens and engaging with the community on our official telegram, discord, or on social media. Keeping up with DAO activities, proposals, and voting initiatives will allow you to have a say in the direction of the DAO and the broader BankSocial ecosystem.

Start Staking Today!

Staking BSL in the BankSocial App offers a unique opportunity to earn rewards while retaining control of your assets. With non-custodial staking and a straightforward process, you can maximize your earning potential while contributing to the growth of the BSL community.

Start staking today by downloading the BankSocial App on the App or Google play store here


was originally published in BankSocial News on Medium, where people are continuing the conversation by highlighting and responding to this story.

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