Binance ETH Staking

The Ethereum network is a “Proof-of-Stake” network, where holders of ETH can stake their ETH to secure the network and earn rewards. However, staking directly through the Ethereum network requires at least 32 ETH, as well as setting up and maintaining nodes.

Binance lowers the barriers by running the nodes for users and offering the option to stake from as little as 0.0001 ETH to earn rewards. When you stake ETH via Binance, you will get WBETH as the tokenized representation of your staked ETH and rewards.

Wrapped Beacon ETH (WBETH) represents your staked ETH plus the staking reward received, in a tradable and transferable form.

Ordinary staking would lock up your staked assets, which means you cannot use them for other purposes. It increases a user's opportunity cost.

In contrast, WBETH provides flexibility to sell, transfer, or use the staked ETH position. You can even move WBETH to a personal wallet and use it outside the Binance platform whilst still earning rewards.

WBETH accumulates the staking rewards, even when it is used in other Binance products or external DeFi applications for additional yield opportunities.

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The ETH staking APR is dynamic, following the on-chain Ethereum staking rewards which fluctuate due to various factors including on-chain activities and consensus rewards, etc. A commission fee on the reward is charged to ensure the product is sustainable. Rewards are distributed to Binance ETH Staking users on a T+1 day basis after the rewards are generated on chain.

Staking ETH into WBETH does not diminish your ETH balance. Both your ETH and earned rewards can be reclaimed based on the applicable conversion ratio at redemption.

The WBETH:ETH ratio is not 1:1 because 1 WBETH represents 1 staked ETH plus the staking rewards since 2023-04-27 08:00 (UTC). Due to the accumulation of staking rewards, the value of 1 WBETH progressively exceeds that of 1 ETH. The ratio is updated daily to reflect the rewards earned from the staked ETH.

Example*:
On 22 July 2023, the WBETH:ETH conversion ratio was 1:1.01004105. When a user stakes 10 ETH, they would obtain 9.90058770 WBETH.

ETH staking rewards accumulate, and the user's WBETH becomes worth more ETH. Three months later, on 23 October 2023, the WBETH:ETH conversion ratio has grown to 1:1.01980774.

If the user redeems their WBETH on that day, they would receive 10.09669596 ETH, which includes both their staked amount and the earned rewards.

*The numbers above are for illustrative purposes only. The actual scenario depends on the conversion rate at stake/redeem, the holding period of WBETH, and on-chain ETH staking APR, etc.

Daily at 23:45 - 00:15 (UTC+0)

Please note that staking/redemption feature is paused in the period when the WBETH:BETH conversion rate is being updated.