Stake on BSC

BNB STAKING BACKGROUND

Dawn introduces its BNB staking solution within the BNB Chain framework, which consists of the BNB Beacon Chain (BC) for governance and the BNB Smart Chain (BSC) for smart contracts and DeFi activities in the Binance ecosystem. BSC can accommodate up to 42 validators, with the top 21 in the active set earning transaction fees. Token holders, including validators, have the option to bond their tokens for staking, delegate to validators, and change their delegation after a 7-day period. Rewards earned by validators are shared with delegators, and any slashing penalties incurred by validators do not affect the stakes of their delegators.

DAWN BNB LIQUID STAKING

Dawn's BNB liquid staking product empowers BNB holders to stake their assets seamlessly through the BNB staking interface. As users stake BNB, they receive stkBNB tokens, which increase in value over time as they accumulate staking rewards, following a similar model to Compound's cToken.

The process begins with users depositing BNB on the Dawn application, directing it into Dawn's StakePool contract. Each day at 23:00 hrs UTC, the BC bot initiates a staking transaction, consolidating the deposited BNB in the StakePool contract and delegating it to the Dawn validator set. Users start earning staking rewards immediately upon depositing BNB to the StakePool, with the rewards reflected in the rising exchange rate (c-value) for the stkBNB token.

Users enjoy flexibility in unstaking their stkBNB through the Dawn application. During the unstake process, the user's deposited stkBNB is burned, generating a claim for an equivalent amount of BNB based on the current exchange rate (c-value). After a 15-day waiting period, users can claim the unstaked BNB from the Dawn application. This 15-day timeframe ensures the fulfillment of user claims and allows the bot to undelegate from any BNB chain validator once every 7 days.

Alternatively, users can exit their liquid staked BNB position by exchanging stkBNB for BNB on decentralized exchanges, bypassing the need to wait for the 15-day unstaking period. Upon executing the unstake transaction, users cease earning rewards.