Want to participate in the DeFi ecosystem with BNB to earn yields? Today, let's talk about the complete process of staking BNB to borrow stablecoins. This operation might seem a bit complex for beginners, but once you understand the logic, it's just a matter of repeating a few steps.

**Stage 1: Preparation — Web3 Wallet and BNB**

First, you need a Web3 wallet, such as MetaMask or a Web3 wallet from a major exchange. When choosing a wallet, it's recommended for beginners to use the exchange's custodial wallet because it's easier to recover, and there's no need to worry about losing private keys.

Next, deposit BNB into your wallet. When transferring from your exchange account, make sure to select the BNB Smart Chain network (BEP-20 protocol). This is a common pitfall—choosing the wrong network could result in losing your tokens. Regarding the amount, if you're participating in financial activities, there's no need to go over 50,000 units unless you have a large amount of funds. Lastly, remember to keep some BNB for Gas fees; otherwise, the transaction won't be able to be processed on-chain.

**Stage 2: Staking — BNB to sBNB**

Now, connect your Web3 wallet to a well-known DeFi protocol. The key step: you need to stake BNB to generate the corresponding liquidity staking token (which might be called sBNB or other forms). This process is essentially: locking your BNB into a smart contract, which then issues you a receipt.

You can participate with as little as 0.01 BNB, so there's no need to wait until you have a full 1 BNB. Enter the amount, authorize your wallet to sign, confirm the transaction, and the receipt will be credited to your account. This receipt is crucial—it serves as collateral for borrowing and lending, and it remains liquid without being frozen.

**Stage 3: Borrowing — Using Collateral to Borrow Stablecoins**

Once you have the staking receipt, you can access the lending module. Here, you use your liquidity staking tokens as collateral to borrow stablecoins from the protocol. The amount you can borrow depends on the collateralization ratio—rules vary across protocols, but generally, you can't borrow an amount equal to your collateral; you need to reserve some safety margin.

For example, to borrow $100 worth of stablecoins, you might need $150 worth of collateral. This is to prevent liquidation during market volatility when the value of your collateral drops.

**Practical Details in Operation**

Network choice is really important. BNB Smart Chain is the main ecosystem, but other chains also support these operations—don't get them mixed up.

Gas fee fluctuations are also something to be prepared for. Sometimes, during network congestion, Gas fees can double, so avoid making critical transactions at peak times.

Monitoring your collateralization ratio is vital. If BNB prices drop significantly, the value of your collateral decreases, potentially triggering liquidation. You can either add more collateral or repay part of the stablecoins.

What can you do with the borrowed stablecoins? You can use them in other DeFi protocols for liquidity mining, participate in lending markets to earn interest, or even arbitrage directly. It depends on your risk appetite and market opportunities.

**Risk Warnings**

This process may seem simple, but it involves risks such as smart contract vulnerabilities, price volatility, and liquidation risks. Contracts may have bugs, markets could crash, and your position might be forcibly liquidated. Before investing large sums, try small amounts first to familiarize yourself with the entire process.

Additionally, different DeFi protocols have different rules—interest rates, collateral ratios, liquidation thresholds—all vary. Always read the rules carefully before entering a new protocol and avoid blindly following others.

Overall, BNB staking and borrowing stablecoins is a mature strategy in the DeFi space. Although it looks like many steps, the actual operation involves just a few clicks. The key is to understand the purpose and risks of each step, rather than blindly copying.