How to Lend Crypto BNB on Compound: Step-by-Step Guide for Passive Income

What Is Compound and Why Lend BNB?

Compound is a leading decentralized finance (DeFi) protocol that lets users lend and borrow cryptocurrencies without intermediaries. By lending your BNB (Binance Coin) on Compound, you earn passive interest paid in real-time—directly into your wallet. This guide breaks down how to lend crypto BNB on Compound step by step, turning idle assets into income streams while contributing to DeFi liquidity.

Prerequisites for Lending BNB on Compound

Before starting, ensure you have:

• Wrapped BNB (wBNB): Compound operates on Ethereum, so you need wBNB (an ERC-20 version of BNB).
• Ethereum Wallet: MetaMask or WalletConnect-compatible wallets like Trust Wallet.
• ETH for Gas Fees: To cover transaction costs on the Ethereum network.
• BNB Tokens: Convert these to wBNB via Binance, PancakeSwap, or a DEX.

Step-by-Step Guide to Lend Crypto BNB on Compound

Step 1: Convert BNB to Wrapped BNB (wBNB)

1. Send BNB to your Ethereum-compatible wallet (e.g., MetaMask).
2. Use a decentralized exchange like PancakeSwap or 1inch to swap BNB for wBNB.
3. Confirm the transaction and wait for wBNB to appear in your wallet.

Step 2: Connect Your Wallet to Compound

1. Visit the Compound app.
2. Click “Connect Wallet” and choose your wallet provider (e.g., MetaMask).
3. Approve the connection in your wallet pop-up.

Step 3: Deposit wBNB into Compound

1. Under “Supply Markets,” find wBNB and click “Supply”.
2. Enter the amount of wBNB to lend. Review interest rates (APY varies based on demand).
3. Approve wBNB for Compound in your wallet (one-time action).
4. Confirm the deposit transaction and pay the ETH gas fee.

Step 4: Monitor and Earn Interest

1. Interest accrues every Ethereum block (~15 seconds).
2. Track earnings in real-time under “Your Supplies” on Compound.
3. Withdraw anytime by clicking “Withdraw” next to your wBNB balance.

Key Risks and Tips for Lending BNB Safely

• Smart Contract Risk: Compound is audited, but exploits are possible. Only lend what you can afford to lose.
• Interest Rate Fluctuations: APY changes with market demand—higher during borrowing surges.
• Gas Fees: Optimize by transacting during low-congestion periods (use ETH Gas Station for estimates).
• Impermanent Loss: Minimal for lending, but relevant if providing liquidity in pools.

FAQ: Lending BNB on Compound

• Q: Is lending BNB on Compound safe?
  A: While audited, DeFi carries risks like smart contract bugs. Use reputable wallets and never share keys.
• Q: What’s the current APY for BNB lending?
  A: Rates fluctuate—check Compound’s app live. Historically, it ranges from 1% to 8%.
• Q: Can I withdraw my BNB anytime?
  A: Yes! Withdrawals are instant, minus Ethereum gas fees.
• Q: Do I need to wrap BNB first?
  A: Absolutely. Compound only supports ERC-20 tokens like wBNB on Ethereum.
• Q: Are there minimum deposits?
  A: No minimums, but gas fees make small deposits impractical.

Conclusion

Lending crypto BNB on Compound step by step is a straightforward way to earn passive income. By converting BNB to wBNB and depositing it into Compound, you unlock DeFi yields while keeping full custody of your assets. Start small, prioritize security, and compound your crypto growth today!