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Bybit has unveiled its first exchange-backed liquid staking token by bringing bbSOL to Solana.
On Thursday, Bybit, currently the second-largest cryptocurrency exchange in the world by trading volume, announced bbSOL was live on the Solana (SOL) blockchain.
The exchange-backed liquid staking token is a collaboration between the crypto exchange and several ecosystem players, including Sanctum, Kamino Finance, Solayer, and Orca.
Why bbSOL?
bbSOL allows Solana holders to add to their participation in the decentralized finance world by allowing for SOL staking via Bybit.
Liquid staking means the holders can restake bbSOL to earn rewards as they help secure the Solana network.
SOL holders can tap into this new token to access earning opportunities on Bybit’s centralized exchange and Bybit Web3 products.
According to Ben Zhou, the chief executive officer and co-founder of Bybit, bbSOL unlocks seamless asset management and will empower not just token holders, but also other network participants.
These include developers, liquidity providers, and decentralized exchange operators. All of these players can contribute to Solana’s network growth as they earn rewards for their efforts.
Key role of bbSOL partners
Bybit’s partners on the bbSOL project will all play various roles aimed at enhancing the token’s robustness in the Solana staking and restaking market.
Sanctum’s deep liquidity will enhance bbSOL swaps and withdrawals, while users can opt for liquidity provision via Orca.
This latter functionality will leverage Kamino Finance’s Liquidity Vault product for automated provision. Meanwhile, Solayer offers a restaking network.
“Bybit’s launch of bbSOL marks a significant milestone,” said Lily Liu, President of the Solana Foundation.
“Their collaboration with other key players exemplifies Bybit’s commitment to innovation and supports the ongoing development of the Solana ecosystem.”
Binance also launching BNSOL
bbSOL’s launch won’t be the only SOL liquid staking token in the market. Already, Binance has announced the launch of a Binance LST on Solana dubbed BNSOL.
The leading crypto exchange provided a further update to the BNSOL token on Sept. 4 after an initial announcement in August.
Like bbSOL, the BNSOL token will offer SOL holders a chance to stake their assets on Binance to get BNSOL. With it, users will access staking rewards as well as benefit from additional opportunities.
In this case, Binance says BNSOL will also accrue staking rewards even when deployed across other Binance products.
This will also apply to the LST token’s use in external DeFi applications, including across trading, lending, and liquidity provision.
More significantly, users will be able to withdraw their BNSOL to other wallets, with the process of transferring tokens to the Binance Web3 Wallet or other wallets similar to the usual crypto withdrawal processes.
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