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

## What is Compound and Why Lend BNB?nnCompound is a decentralized finance (DeFi) protocol built on Ethereum that lets users lend and borrow cryptocurrencies. By lending your crypto, you earn interest in real-time without intermediaries. Binance Coin (BNB) is a popular choice due to its utility across the Binance ecosystem and growing adoption. Lending BNB on Compound allows you to generate passive income while retaining ownership of your assets. Interest rates fluctuate based on market demand, often offering competitive returns compared to traditional savings.nn## Prerequisites for Lending BNB on CompoundnnBefore starting, ensure you have:n* **A Web3 Wallet:** Install MetaMask (or similar) and set it up with the Ethereum network.n* **BNB Tokens:** Acquire BNB on Binance Smart Chain (BSC).n* **Ethereum (ETH):** Fund your wallet with ETH to cover gas fees for Ethereum transactions.n* **Bridged wBNB:** Since BNB is native to BSC, you’ll need to bridge and wrap it into wBNB (ERC-20 token) for use on Ethereum.n* **Basic Crypto Knowledge:** Understand gas fees, wallet security, and DeFi risks.nn## Step-by-Step Guide to Lending BNB on Compoundnn### Step 1: Bridge BNB to Ethereum as wBNBn1. Access a bridge like **Binance Bridge** (bridge.binance.org) or Multichain.n2. Connect your Web3 wallet.n3. Select BNB as the source asset (BSC network) and wBNB as the target asset (Ethereum network).n4. Enter the BNB amount to bridge and confirm the transaction. Wait 5-20 minutes for completion.nn### Step 2: Connect Wallet to Compoundn1. Visit the official Compound app: [app.compound.finance](https://app.compound.finance).n2. Click “Connect Wallet” and choose your wallet (e.g., MetaMask).n3. Approve the connection in your wallet pop-up.nn### Step 3: Supply wBNB to Compoundn1. In the Compound dashboard, locate “wBNB” under “Supply Markets.”n2. Click “Supply” and enter the wBNB amount you wish to lend.n3. Review transaction details, including gas fees.n4. Confirm the transaction in your wallet. Once processed, your wBNB is deposited.nn### Step 4: Monitor and Earn Interestn1. Your supplied wBNB starts earning interest immediately, displayed in the dashboard.n2. Interest compounds every Ethereum block (~15 seconds).n3. Track earnings via the “Your Supplies” section or tools like DeBank.nn### Step 5: Withdraw Funds (Optional)n1. Navigate to “Your Supplies” and click “Withdraw” for wBNB.n2. Enter the amount or select “Max.”n3. Confirm the transaction in your wallet. Funds return to your wallet as wBNB.nn## Risks and Considerationsnn* **Smart Contract Vulnerabilities:** Compound is audited but not risk-free. Hacks could lead to loss of funds.n* **Gas Fees:** Ethereum transactions require ETH, which can be expensive during network congestion.n* **Interest Rate Volatility:** Rates change based on supply/demand—higher risk can mean higher returns.n* **Impermanent Loss (Minimal):** Lending is low-risk compared to liquidity provision, but asset value fluctuations affect overall returns.n* **Regulatory Uncertainty:** DeFi regulations are evolving; stay informed about legal implications.nnAlways use official links, enable wallet security features (like hardware wallets), and never share private keys.nn## Frequently Asked Questionsnn* **Q: Can I lend native BNB directly on Compound?**n A: No. You must bridge BNB from Binance Smart Chain to Ethereum and convert it to wBNB (wrapped BNB) first.nn* **Q: What’s the average interest rate for lending BNB on Compound?**n A: Rates vary—typically 1-8% APY. Check the Compound dashboard for real-time data based on market activity.nn* **Q: How often is interest paid?**n A: Interest accrues continuously and compounds every Ethereum block (~15 seconds). You can withdraw anytime.nn* **Q: Do I need KYC to lend on Compound?**n A: No. Compound is permissionless—no identity verification is required.nn* **Q: Can I borrow against my supplied BNB?**n A: Yes! Use your supplied wBNB as collateral to borrow other assets like USDC or ETH within Compound.nn* **Q: Is there a minimum amount to lend?**n A: Technically no, but gas fees make small amounts impractical. Aim for at least $50-$100 worth of wBNB.nn* **Q: What happens if Compound gets hacked?**n A: Your funds could be at risk. Only lend what you can afford to lose and consider decentralized insurance options like Nexus Mutual.nnBy following this guide, you’re set to earn passive income with BNB on Compound. Start small, stay updated on DeFi trends, and prioritize security to maximize your crypto lending journey!