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

## Why Lend BNB on Compound for Passive Earnings?
Compound Finance is a leading decentralized lending protocol that lets you earn interest on cryptocurrencies like BNB (Binance Coin) by supplying them to liquidity pools. Lending BNB on Compound offers:

– **High Yield Potential**: Earn competitive APY (Annual Percentage Yield) on idle BNB.
– **Liquidity Flexibility**: Withdraw funds anytime without lock-up periods.
– **Security**: Built on Ethereum with audited smart contracts.
– **Decentralization**: No intermediaries—transact directly from your wallet.

While Compound primarily operates on Ethereum, you’ll use **Wrapped BNB (WBNB)**, an ERC-20 version of BNB, for compatibility. This guide covers the full process.

## Step-by-Step Guide to Lending BNB on Compound
Follow these steps to start earning interest:

### Step 1: Prepare Your Wallet and Assets
– **Set up a Web3 wallet**: Install MetaMask (Chrome/Brave extension or mobile app).
– **Add Ethereum Network**: Ensure MetaMask is connected to Ethereum Mainnet.
– **Acquire BNB**: Buy BNB on exchanges like Binance or Coinbase.
– **Convert BNB to WBNB**:
1. Send BNB to your MetaMask Ethereum address via Binance Bridge or a DEX like Uniswap.
2. Confirm the WBNB balance in your wallet (Contract: 0xbb4CdB9CBd36B01bD1cBaEBF2De08d9173bc095c).

### Step 2: Fund Your Wallet with ETH
– **Why ETH?**: You need Ethereum (ETH) to pay gas fees for transactions.
– **Buy ETH**: Purchase ETH from an exchange and send it to your MetaMask address.
– **Recommended**: Keep 0.05–0.1 ETH for multiple transactions.

### Step 3: Connect to Compound Finance
1. Visit the official [Compound website](https://app.compound.finance/).
2. Click “Connect Wallet” (top-right corner).
3. Select MetaMask and approve the connection.
4. Verify network: Ensure you’re on **Ethereum Mainnet**.

### Step 4: Supply WBNB to Compound
1. Navigate to the “Supply” section.
2. Search for “WBNB” in the asset list.
3. Enter the amount of WBNB to lend.
4. Click “Supply” and confirm in MetaMask:
– Review gas fees.
– Approve the transaction.
5. Wait for confirmation (usually 15–60 seconds).

### Step 5: Monitor and Manage Your Position
– Track accrued interest in the “Dashboard” tab.
– **Withdraw funds anytime**: Go to “Withdraw”, select WBNB, and confirm.
– **Reinvest**: Compound interest automatically, but you can manually supply more WBNB.
– Use analytics tools like [DeFi Pulse](https://defipulse.com/) for APY comparisons.

## Maximizing Your Lending Strategy
– **Check Real-Time APY**: Compound’s rates fluctuate based on supply/demand. Current WBNB APY: 1.5%–4% (varies).
– **Diversify**: Supply other assets (e.g., USDC, ETH) to spread risk.
– **Gas Fee Tips**: Transact during low-activity periods (UTC nights/weekends).
– **Security Best Practices**:
– Use hardware wallets (Ledger/Trezor) with MetaMask.
– Bookmark Compound’s official site to avoid phishing.

## Frequently Asked Questions (FAQ)
### Can I lend native BNB on Compound?
No. Compound operates on Ethereum, so you must convert BNB to WBNB (ERC-20 standard) using a bridge or DEX.

### What are the risks of lending on Compound?
– **Smart contract vulnerabilities**: Audited but not risk-free.
– **Impermanent loss**: Not applicable to lending (only to liquidity pools).
– **Interest rate volatility**: APY changes with market conditions.

### How often is interest paid?
Interest compounds every Ethereum block (~15 seconds). Earnings accrue in real-time and can be withdrawn anytime.

### Is there a minimum amount to lend?
No minimums, but ensure you have enough ETH to cover gas fees (≥0.003 ETH recommended).

### Can I borrow against my lent BNB?
Yes! Use supplied WBNB as collateral to borrow other assets (e.g., DAI, USDC) on Compound—ideal for leveraged strategies.

## Final Tips for Success
Start small to test the process, track APY trends weekly, and never share your seed phrase. Lending BNB on Compound is a powerful way to grow your crypto holdings passively. For updates, follow Compound’s [official Twitter](https://twitter.com/compoundfinance).