In a press release dated April 24, the largest cryptocurrency exchange by trading volume, Binance, unveiled wrapped beacon eth (WBETH), its latest staking product. It joins the ranks of other competing liquid staking providers, including Lido, Coinbase, Rocket Pool, and Frax. This latest addition to Binance’s staking solutions is built on the Ethereum network.
Binance Takes On Ethereum-Based Staking With The Launch Of WBETH
Over the past two years, tools for liquid staking based on Ethereum have become more and more prominent. There is currently approximately 8.2 million ether worth $15.49 billion locked into liquid staking derivatives, according to quantifies provided by defillama.com. Lido Finance, the current market leader in this area, owns an astounding 74.22% of these ether assets.
The wrapped ether product from Coinbase ranks second with $2.19 billion, after Rocket Pool with $983.26 million, Frax with $297.09 million, and Stakewise with $159,98 million. Binance disclosed that it had developed two contracts for its new WBETH token, one for the Binance Smart Chain and the other for Ethereum. On Thursday, the token will be tradable on Binance with BUSD, ETH, and USDT trading pairs.
On April 27, 2023, Binance users will be given the option to create WBETH by depositing 1 ether or vice versa. According to Binance, each WBETH token will earn ETH Staking rewards daily based on the daily APR on ETH Staking. To ensure the accuracy of the BETH/WBETH conversion rate, the “Wrap” and “Unwrap” functions will be temporarily suspended at a designated time every day.
