How Does WBETH Work In Binance And Earn Money
How WBETH Works on Binance and How to Earn Money with It
Wrapped Beacon ETH (WBETH) is a liquid staking token introduced by Binance, designed to enhance the Ethereum staking experience by providing users with greater flexibility and immediate liquidity. Here’s a detailed look at how WBETH works and the various ways users can earn money with it.
What is WBETH?
WBETH is a wrapped version of Beacon ETH (BETH), which represents staked ETH and the associated staking rewards on the Ethereum network. This token allows users to benefit from the advantages of DeFi projects while retaining their staking rewards. WBETH is built on the Binance Smart Chain, ensuring fast transactions and low costs.
How to Obtain WBETH
To obtain WBETH, users need to stake their ETH through Binance’s ETH Staking platform. Here are the steps:
- Log in to Binance Account: Users must log in to their Binance account and navigate to the ETH Staking section under the “Earn” tab.
- Stake ETH: Click on “Stake ETH” and enter the amount of ETH you wish to stake. This will convert your ETH into BETH.
- Wrap BETH to WBETH: Users can then wrap their BETH into WBETH. This process is straightforward and can be completed by following the on-screen instructions.
Use Cases of WBETH
WBETH offers several use cases that allow users to earn money:
Spot Trading: WBETH can be traded on the Binance spot market in pairs such as WBETH/USDT and WBETH/ETH. By holding WBETH, users can earn ETH staking rewards, which accumulate and auto-compound at the token’s conversion rate until the WBETH is unwrapped to ETH.
ETH Staking Rewards: Simply by holding WBETH, users are eligible for ETH staking rewards. These rewards are not distributed to the Binance Spot Wallet but instead accumulate and auto-compound at the token’s conversion rate.
Liquidity Farming: Users can participate in liquidity farming by providing liquidity to decentralized exchanges (DEXs) such as PancakeSwap, Curve, or Balance. By pairing WBETH with another token supported by the pool (e.g., ETH or USDT), users can earn fees from swaps made within the pool. However, users should be aware of the risk of impermanent loss when entering liquidity pools.
Collateral for Loans: WBETH can be used as collateral for Binance Loans, allowing users to leverage their staked assets without having to unstake them.
DeFi Projects: WBETH can be used in various DeFi projects, such as yield farming and other crypto-related activities, expanding the possibilities for earning and using crypto assets.
Staking Rewards and Conditions
Binance ETH Staking offers a dynamic Annual Percentage Rate (APR) of 3.48%, with Binance taking a 10% commission for its services. Rewards are distributed every T+2 days, and the WBETH:BETH conversion rate is updated daily to reflect the rewards earned from the staked ETH.
Key Features
- Simplified Staking Process: Binance’s ETH Staking platform simplifies the staking process, allowing users to stake ETH with as little as 0.0001 ETH, bypassing the standard 32 ETH requirement.
- Automated Reward Tracking: The platform features an innovative WBETH Reward History, allowing users to track and view their staking returns with unmatched accuracy and convenience.
- Versatile Use Cases: WBETH offers a flexible, tradable form of staked ETH, expanding the possibilities for earning and using crypto assets in DeFi and other crypto-related activities.
By leveraging these features and use cases, users can maximize their earnings with WBETH while enjoying the benefits of staking and participating in DeFi projects.