Binance, the world's largest Bitcoin and altcoin exchange in terms of trading volume, announced that it will start transactions for the BDOT/DOT trading pair on 28.01.2022. In the announcement from Binance; While stating that BDOT cannot be used for deposits or withdrawals, he also announced that users will be able to convert their DOTs to BDOT on Binance's DOT Slot Auction portal as of 27.01.2022.
What is the BDOT added by Binance?
BDOT is a tokenized asset representing the DOT staked in the DOT Slot Auction, which can be converted to DOT at a ratio of 1:1. Users will not be able to use their DOT during the rental period, which can last 96 weeks or more. Therefore, we have released BDOT and launched the BDOT/DOT trading pair to provide users with a liquidity solution. When the DOT lease expires, users will be able to convert their BDOT to DOT at a ratio of 1:1 based on their BDOT holdings.
Binance also highlights the following important points about BDOT:
- While BDOT is a tokenized asset that represents your staked DOT on a 1:1 basis, the price is determined by the market and can be higher or lower than the DOT price. Please be aware of the risks involved.
- If users sell their BDOT during the rental period, they will continue to receive voting rewards from the projects they voted for; however, users who purchase BDOT from the secondary trading market will not receive these voting rewards.
- The slot rental period is expected to expire on 24.10.2023 and users can then convert BDOT to DOT at a ratio of 1:1 on the DOT Slot Auction portal. Please note that the lease expiration date is determined by the block height of the Polkadot network and may change.