Your Guide to Binance Earn | Binance Academy

TL;DR

Not interested in trading but still looking to increase your crypto holdings? Is the 0.05% APY your local bank offers on your savings account not exciting enough? Well, you’ll surely find something appealing within the Binance Earn product suite.

Binance Earn is your crypto savings account. Here, you’ll find a great variety of options for earning passive income with your crypto holdings.

Introduction

You may have come across this famous quote by investor Warren Buffett:

If you don't find a way to make money while you sleep, you will work until you die.

Binance Earn is an awesome way to increase your savings while you’re sound asleep, knowing that your funds are doing all the work for you. There are a number of different options, each with its own assumptions about your risk profile, time horizon, and desired returns.

Whether you just want to stake your Proof of Stake (PoS) coins, lend your funds for interest, or safely deposit them to a DeFi service through Binance, we’ve got you covered. So, let’s see what Binance Earn has to offer.

What is Binance Earn?

Binance Earn is a complete suite of financial products you can use to increase your crypto holdings. You can think of it as your crypto savings account. The difference between a regular savings account and this one is that crypto is capable of so much more!

Let’s go through the main categories of Binance Earn so you can figure out which suits your investment style the best.

Flexible Savings

Flexible Savings lets you earn interest on your funds. It’s really easy to use, and not surprisingly, it gives you great flexibility! You can deposit your funds, earn interest, and redeem them at any time.

So, if you’re holding some money in your Spot Wallet, why not deposit it into a Flexible Savings account? Since you can access it any time, it’s easy to make those funds work for you while they’re not being used elsewhere.

Note that the interest will not be calculated on the day you subscribe to a Flexible Savings product. Instead, the first interest payment is calculated from the next day after your subscription.

Locked Savings

Locked Savings offer you better returns but less flexibility to access your funds. The difference here is that you’ll set a predetermined duration for your funds to accrue interest. Why is this better? Well, this will give you generally higher interest rates than Flexible Savings products since the term and interest rate are both fixed.

Locked Savings products can range from 7 to 90 days. So, if you know you won’t need some funds elsewhere for a certain period of time, you can lock them to earn a higher APY.

Activities

Activities are special events that pop up from time to time under the Activities tab. These generally have a capped supply, meaning you’ll need to be quick to subscribe. These can offer even higher returns than Fixed Savings usually does.

Otherwise, we could say that these lending products are quite similar to Fixed Savings. But, since they’re only available from time to time, you can get higher rewards if you keep up with what’s happening. Make sure to keep an eye on the announcements to secure your slot!

Locked Staking

By simply holding Proof of Stake coins in your Spot Wallet, you can earn staking rewards on your holdings – great, simple. However, there’s also a way to earn higher rewards on staking.

If you commit your PoS coins to be locked for periods ranging from 7 to 90 days, you can earn a higher reward. This is essentially the same deal as Flexible vs. Locked Savings, only with staking.

In addition, some coins will also allow you to do a Flexible Lock, where you commit your funds for staking, but you still maintain the ability to withdraw if you want to.

Launchpool

By now, you’ve probably heard about Binance Launchpad, right? It’s a token launch platform where promising projects can get funded by the user base of Binance through a process called an Initial Exchange Offering (IEO). You've probably also heard about yield farming or liquidity mining, where users lock up funds to liquidity pools to “mine” a new token.

So what do you get when you put an IEO and yield farming together? Launchpool. You can lock up your BNB, BUSD, and other cryptocurrencies to get a share of a new token that's being launched on Binance. Sometimes, tokens will even launch both on Launchpad and Launchpool at the same time.

Launchpool is a great way to earn some passive income, as the cost of getting the new tokens is only the opportunity cost of locking your tokens. Even so, you can redeem them at any point during the event.

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Asset Management

The Asset Management tab gives you access to some more advanced savings products. Not to worry, though. These are still quite easy to use. Let’s see how they work.

Binance Liquid Swap

Binance Liquid Swap is a special type of exchange that prices assets according to a mathematical formula instead of an order book. If you’ve read our Uniswap article, you’ll know how this kind of liquidity protocol works. Another fancier term for it is automated market maker (AMM).

Binance Liquid Swap is somewhat similar to Uniswap and other AMMs like Curve Finance, but it’s operated by Binance. It’s a dead-simple way to quickly convert between assets such as stablecoins with low fees and slippage.

That’s great, but how does this concern savings? Well, similarly to Uniswap and other AMMs, you can also become a market maker. Just deposit one (or multiple) of the supported stablecoins, and start earning interest. Who knows, the returns you get here may even be higher than if you would be using other Binance Earn products.

Dual Investment

Binance Dual Investment is a nifty way to earn some side income no matter which direction the price goes. It lets you maximize yield on your savings while minimizing price risk. How does it work? Let’s see a quick run-through.

You deposit a cryptocurrency and earn a return based on two assets. You commit your holdings, lock in a yield, but earn more if the value of your holdings increases during the time that they’re locked up.

Simply, it’s a way for you to control your risk. If you’d like to read about it in greater detail, check out A Quick Guide to Binance Dual Investment.

BNB Vault

The BNB Vault is a BNB yield aggregator that combines Savings, BNB DeFi Staking, and Launchpool to give you the best APY returns. It’s very easy to start earning with BNB Vault.

After staking your BNB, you will receive BNB Vault assets. The interest will start to calculate on the second day and rewards are distributed to your account on a daily basis.

You can redeem your funds at any time via two methods: fast redemption and standard redemption. Fast redemption allows you to redeem your BNB on the same day you make the request, but you will lose the interest accrued on that day. Standard redemption will return your funds the next day, but you will still be entitled to the interest accrued on that day.

Closing thoughts

Phew, that’s quite a lot of options to earn passive income! Getting your Binance savings to work for you has never been easier, and the returns can be quite good as well. Binance Earn lets you choose the product that best suits your investment style, so you can just sit back and let your funds do the work.