What is Binance Wrapped DOT (BDOT)? Binance adds BDOT/DOT trading pair

Not long ago, the Binance exchange announced the launch of the DOT Slot Auction program. This parachain auction applies a candle auction mechanism to distribute parachain positions on the Polkadot network. To get parachain positions, projects need to bid by staking DOT. At this time, a new name appeared, BDOT, which raised what BDOT is. Then today, AZCoin News will reply to you and announce that Binance officially opens trading for the BDOT/DOT trading pair on 19:00 (UTC) on January 28, 2022.

What is BDOT?

Many people mistakenly believe that BDOT is BabyDot, which also has the ticket BDOT. However, that’s not the case.

BDOT is a tokenized asset representing your staked DOT on a 1:1 basis. It provides liquidity for users during the staking period. When the rental period of the parachain location ends, users can exchange DOT to BDOT at a ratio of 1:1 and vice versa. If you sell your BDOT during the parachain lock-in period, you can still get token rewards from the projects that have voted. Once the lockup period ends, you can swap your BDOT back to DOT on a 1:1 basis, with transaction fees and slippage (if any).

The question that gets asked the most is if you sell your bDOT, can you still get voting rewards for selected projects?

  • If the project successfully bids for a Slot Auction, after the auction ends, you can choose to convert your DOT to BDOT on Binance.
  • If you sold your BDOT during the lock-up period, you would still be able to receive voting rewards from your chosen projects, but you will need BDOT if you want to redeem your DOT.

Binance adds BDOT/DOT trading pair starting tomorrow

According to Binance, the exchange will open trading for the BDOT/DOT trading pair on 07:00 (UTC) on January 28, 2022. However, BDOT is not available for deposits or withdrawals. Accordingly, users can convert their DOT to BDOT on Binance’s DOT Slot Auction portal starting from 07:00 today.

And there are also things to keep in mind as follows. Although BDOT is a tokenized asset representing your staked DOT on a 1:1 basis, the market determines the price. Therefore, it can be higher or lower than the DOT price.

If you sell your BDOT during the lease period, you will receive the voting rewards from the projects you voted for. But, remember that if you bought BDOT from the secondary trading market, you would not receive these voting rewards.

“The slot lease period is expected to end on 2023-10-24, and users can then convert BDOT to DOT at a 1:1 ratio on the DOT Slot Auction portal”, Binance stated.

Sign up for a Binance account here (Discount 10% trading fees): https://accounts.binance.com/en/register?ref=29171587

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