Hello, Why Binance has much bigger reward than other pools? what’s the trick
thanks
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Do u have numbers? Did u read the conditions?
If you stake as a customer of Binance, it’s something very different than staking in a stake pool from your own wallet.
Yes, Binance runs stake pools. The rewards for that work exactly the same as every other pool. They are quite high, since Binance can fill all their pools up to saturation, but also not as high as they could be, because they only pledge very little: https://cexplorer.io/groups/binance
But the rewards for their stake pools go to Binance itself, not to their customers.
The rewards they pay their customers are cross-financed by their whole operation – those stake pools, but also the fees, … – and as @Alexd1985 said they have conditions. I do not know them, but they might include caps for up to which sum you get them, that they may be changed at will, that you forfeit them if you take out your ADA early, … Read them carefully.
Might be that it’s the right thing for you, but do your research before deciding.
If I remmeber well u will need to “lock” the funds on binance otherwise it is possible to lose the entire rewards…
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To stake with Binance, you need to take the risk of not getting your ADA back if they are faced with the problem like FTX. Your ADA is locked and they will use your ADA to create liquidity(such as loaning etc.). You sacrifice your liquidity to earn more APY.