Security

BNB application sidechains

The BNB Sidechain modular framework, introduced in 2022, enables large-scale companies to build EVM-compatible ecosystems using PoSA consensus. While it's ideal for permissioned and consortium blockchains, application sidechains, like MetaApes and FNCY Chain, could face common challenges — security vulnerabilities, such as centralization, low validator diversity, weak economic incentives, and limited liquidity.

It is a common issue in all L1s paired with sidechain solutions, and that is why they have not been strongly adopted by communities yet.

For application sidechains like Meta Apes and FNCY, Binomial restaking protocol enhances trust and liquidity by integrating these projects into a larger security pool, backed by validators who are incentivized to act honestly and penalized by slashing for misbehavior. Validators, by restaking, help protect these chains from potential security breaches, which in turn fosters greater community confidence and encourages adoption within the broader BNB Chain ecosystem.

Moreover, Binomial supports restaking with both BNB and BEP-20 tokens, which increases the flexibility and liquidity for validators and stakers. By allowing BEP-20 tokens to be restaked alongside BNB, the protocol can tap into the vast array of BEP-20 assets, providing more options for participants. This improves capital efficiency and broadens the pool of staked assets, which in turn enhances the security and decentralization of Layer 2 chains. It also encourages wider ecosystem participation, as users holding BNB and BEP-20 tokens can directly contribute to securing the network.