One of the biggest cryptocurrency exchanges, Binance, has announced an upgrade to its Ethereum (ETH) staking service. As of 2023-04-27, the marketplace will implement Wrapped Beacon ETH (WBETH) on the ETH staking platform. In addition to the ETH staking benefits accumulated on Binance, the new token will let users take part in DeFi initiatives outside of the exchange.
Details of the upgrade
When staking ETH after the launch date, 1 WBETH will be equivalent to 1 BETH, and the entire staking rewards accumulated by the BETH token. Daily ETH staking incentives will be accumulated for each WBETH token staked on the Ethereum network, at a rate equal to the daily APR on ETH staking.
The staking website will let users change their BETH tokens to WBETH at no cost. This will feature 1 BETH being equivalent to 1 WBETH, although this is subject to change as WBETH appreciates over time in line with the daily APR on ETH staking. The BETH/WBETH exchange rate will hence fluctuate and be adjusted once per day.
From 2023-04-27 23:45 UTC, the “Wrap” and “Unwrap” features will be temporarily disabled in order to facilitate daily updates of the BETH/WBETH exchange rate. The following are the smart contract addresses on BNB Smart Chain and the Ethereum Network where users may access WBETH.
On 2023-04-27 at 08:00 (UTC), Binance will begin processing WBETH deposits and withdrawals. Meanwhile, BETH withdrawals will be disabled on 2023-04-26 08:00 (UTC), although BETH deposits will continue to be accepted normally.
Binance will continue to support the BETH/BUSD, BETH/ETH, and BETH/USDT spot trading pairings. With this new update, users may keep BETH in their spot wallets to earn daily staking rewards and utilize WBETH to take part in DeFi projects.
By staking their Ethereum (ETH) on Binance, individuals are eligible to receive incentives from the exchange. Staking ETH on Binance’s dedicated ETH staking website will earn you daily distributions to your spot wallet.
The addition of WBETH to Binance’s ETH staking service gives customers additional control over how and where they get their staking payouts. WBETH paves the way for users to stake Ethereum in DeFi projects that aren’t hosted on Binance while still reaping the advantages of doing so.
Binance’s customers now have even more options for expanding and diversifying their cryptocurrency portfolios, thanks to this new feature as the exchange continues to lead the way.
