In this detailed guide, we will dive deep into Binance Simple Earn. We will discuss Binance Simple Earn and how it differs from preceding Binance earning platforms. We also look at the different products offered by Binance Simple Earn and which one you should choose.
With Binance Simple Earn, you can earn easy passive income on your crypto tokens deposited in Binance. Launched on 22nd September 2022, Binance Simple Earn is a simple and easy-to-use platform for earning crypto passive income on Binance.
So, let’s jump into the beginner’s guide to Binance Simple Earn and see if it’s the right platform for you to stake your crypto assets.
What is Binance Simple Earn?
Binance Simple Earn is a principal-protected product allowing users to earn lucrative rewards on idle cryptocurrency. If you don’t know, principal-protected means that the tokens you deposit in the Binance Simple Earn platform will remain safe and fully returned to you by Binance.
With Binance Simple Earn, you can choose to lock your crypto flexibly, which means you can withdraw your crypto quickly if you want to or lock them for a more extended period to earn higher rewards.
What is Binance?
Binance.com is an online exchange platform founded in China by Changpeng Zhao in 2017. Where you buy and sell cryptocurrencies using digital assets such as Bitcoin and Ethereum.
The Binance exchange is well known for its low trading fees and providing a wide range of cryptocurrency trading pairs, and high liquidity. However, Binance has recently become more than just a crypto exchange and now offers a wide range of financial services.
Binance also has its own Binance Coin (BNB). This token allows you to receive discounts on the services of the Binance platform. Users of Binance can receive a 25% discount on trading fees by paying with Binance’s BNB token.
Binance Simple Earn vs Staking
Before 22nd September 2022, Binance had 3 different products: Flexible Savings, Locked Savings and Locked Staking. The Binance Simple Earn platform is a one-stop platform for all your savings/staking needs, aiming to simplify and enhance the experience of Binance users.
With Binance Simple Earn, you need to select your token amount and lock period, and Binance will do the rest for you. To check how much you can earn for your tokens, head to Binance Simple Earn.
If you have already deposited your tokens in Binance’s Flexible Savings or Locked Staking Products, they will be automatically transitioned to Flexible and Locked Products, respectively. You can see your deposited tokens and manage your subscriptions to these products directly from your Binance Earn Wallet.
Binance Simple Earn Flexible Products
With Binance Simple Earn Flexible Products, you can withdraw your crypto anytime. There are two options for withdrawing your assets from Binance Simple Earn Flexible Products.
If you want to sell your tokens immediately for any reason, you can transfer your assets directly to your Spot Wallet with the ‘Fast Redemption’ option. However, with Binance Fast Redemption, you will not earn any rewards for that day.
With Binance Standard Redemption, your assets will be returned to you on the following day between 00:00 and 8:00 (UTC). However, with Standard Redemption, you can earn interest on your crypto for the last day.
It must be noted that the return for Binance Simple Earn Flexible Products is far lower than with Binance Simple Earn Locked Products.
The Binance Auto-Subscribe feature allows you to automatically subscribe to Simple Earn products daily. Auto-Subscribe, your rewards will compound over time while giving you the option to withdraw at any time. You can enable/disable the Auto-Subscribe feature from the Binance Simple Earn homepage.
How are the Binance Earn Daily Rewards Calculated?
Your Binance Earn daily rewards can be calculated using the below formula:
Deposited assets x APR/365, rounded to 8 decimal places.
Example: If you deposited 1000 MATIC tokens (2% APR) in the Binance Simple Earn Flexible Product, you would earn 1000 x 0.02/365 = 0.0547945 MATIC tokens daily.
Once you deposit your tokens on the Binance Simple Earn Flexible Product, you will start accruing rewards from 00:00 UTC the following day. All your rewards will be automatically sent to your Spot Wallet between 00:00 and 8:00 UTC daily. Please note that the distribution of rewards can be delayed due to network issues or system calculations.
Binance Simple Earn Locked Products
You can also lock your crypto assets for a predetermined period and earn a significantly higher reward with the Binance Simple Earn Locked Product. The higher your lock period, the higher your rewards. For example, if you deposit ATOM in the Simple Earn Flexible, you will earn only 3.50% APR. If you deposit the same ATOM tokens on the Binance Simple Earn Locked Product, you can make a lucrative 28.9% APR.
Once your locking period is complete, your deposited tokens will be returned to your Binance Spot Wallet, along with your total rewards.
Please note that if you decide to unlock your assets before the end of the predetermined lockup period, you will lose all rewards accumulated. So only lock assets that you have complete conviction in and want to HODL for the long term. Binance can take up to 72 hours to return your deposited tokens to your Spot Wallet if you unlock your tokens before time.
Binance Earn Tiered APR
For some Binance Simple Earn products, your rewards will depend on the number of tokens deposited into the platform. This is called Tiered APR. Usually, the higher the number of tokens you deposit, the lower your APR will be.
A great example is Binance’s stablecoin BUSD, where APR falls from 6% to 0.8% when you deposit more than 1000 BUSD.
- 0-1000 BUSD: 6.00% APR
- 1000-10000 BUSD: 0.80% APR
- > 10000 BUSD: 0.30% APR
It is best to use the Earnings Calculator on the Binance Earn page to calculate how much you can earn on your deposited crypto.
How is Binance able to pay Daily Rewards?
Binance can use your deposited tokens on the Simple Earn platform for various purposes. These include loaning them to other Binance users in Margin or Crypto Loan Products or for maintaining Binance’s business operations. Binance can also stake your tokens on proof-of-stake networks. According to their website, Binance is obligated to return your crypto assets regardless of their use.
Please remember that the APR for your deposited tokens is subject to daily change for both Locked and Flexible Products.
To keep it sustainable, Binance places subscription limits on these products to ensure fair participation and keep these products sustainable for their users. Hence, you might be limited to the number of tokens you can deposit in Simple Earn, depending on the Binance product you are using and your Binance user level.