Binance Launchpool offers users opportunities to earn new tokens by staking cryptocurrencies. This analysis breaks down the differences between staking BNB and FDUSD based on recent performance data, helping you choose the right strategy for your goals.
Understanding Binance Launchpool
Binance Launchpool is a service designed to assist projects with initial token distribution. Users can stake their crypto assets to earn rewards in new project tokens. Launched in September 2020, it combines yield farming concepts from decentralized finance (DeFi) with the convenience of a centralized exchange.
The primary staking assets in Launchpool are BNB and major stablecoins like FDUSD. These assets are often referred to as "golden shovels" due to their consistent utility in earning rewards.
FDUSD Performance Analysis
Data from the past twelve Launchpool events reveal key insights about FDUSD:
- Price increases after new mining announcements were consistent, averaging 0.3%.
- Price decreases during mining periods varied but averaged -0.4%, indicating relative stability.
- Annualized yield rates fluctuated significantly but aligned proportionally with BNB pool trends.
- Short-term strategies—buying at announcement and selling after mining—yielded an average annualized return of 67% with no negative outcomes.
- Despite an $11 billion issuance increase during the SAGA event, FDUSD yields remained stable, though sustainability requires further observation.
The stability of FDUSD makes it attractive for risk-averse participants seeking predictable returns.
BNB Performance Comparison
Switching focus to BNB, the same metrics show notable contrasts:
- New mining announcements significantly boosted BNB prices, but with higher volatility.
- Post-mining price declines were common, occurring in 8 out of 12 events.
- Average mining yield was 136%, generally lower than FDUSD’s 157% before FDUSD’s expanded issuance.
- Short-term strategy annualized returns averaged 66%, similar to FDUSD, but relied heavily on two outlier events where BNB prices surged over $40.
BNB offers higher potential rewards but comes with greater price risk, making it suitable for those comfortable with market fluctuations.
Frequently Asked Questions
Which asset is better for short-term mining: FDUSD or BNB?
For users focused solely on mining rewards, both assets offer similar returns. However, FDUSD provides more stable outcomes and doesn’t require hedging strategies. This makes it the superior choice for short-term participants.
For long-term holders, which asset performs better?
Based on recent data, FDUSD outperformed BNB by 15.4% in annualized yield. However, if you anticipate BNB appreciating beyond this margin, it may be the better hold. Additionally, advanced strategies like borrowing against FDUSD to mine elsewhere could influence this decision.
How long are the gaps between mining events?
Over a 118-day period covering multiple events, actual mining lasted 64 days, with an average gap of 4.9 days between campaigns. This short downtime allows for rapid strategy redeployment.
What are the returns from trading instead of mining?
Buying BNB after mining and selling after the next announcement yielded 2.44% absolute returns—higher than mining’s 1.8%. Annualized, this strategy reached 181.7%, though it carries higher risks from potential price drops. For FDUSD, the same approach yielded only 0.3%, far below mining returns.
👉 Explore real-time yield comparisons
Final Thoughts
Choosing between BNB and FDUSD depends on your risk tolerance and investment horizon. FDUSD offers stability and consistent short-term gains, while BNB suits those betting on long-term appreciation and higher volatility. Always consider market conditions and personal strategy before committing funds.