Binance Earn, a trusted platform for users
Increased market volatility is a natural time for investors and traders to reassess their positions. Whether the market is rising or falling, a responsible investor needs to consider their portfolio and risk tolerance.
With recent market developments, many of you have probably found yourself in this situation and are pondering the best option to make. Before making a decision, consider the risk level of each investment. Whether you are simply HODLing, staking cryptocurrency, or are in a futures position, holding stocks is basic risk management.
If you're already a Binance Earn user, we're here to help. Let's break down the risks associated with Binance Earn's services, products, and how the platform manages your assets.
What is Binance Earn?
Binance Earn is the world's leading cryptocurrency passive income platform. The platform has a wide selection of profitable products, suitable for both first-time users and crypto veterans. Therefore, it becomes a mainstay for Binance users who want to earn without leaving the Binance ecosystem.
How Binance Earn creates a trustworthy platform
Even in highly volatile market conditions, Binance Earn allows users to generate passive crypto income. The platform ensures that funds are managed through a set of key indicators:
No subsidies
A reasonable reward ratio is an important factor in creating an operating model that does not require external capital. Each product is self-sufficient and can operate without subsidies. Thanks to that, Binance Earn becomes a sustainable platform with a self-reliant operating mechanism.
Liquidity
Binance Earn aims to keep a balance between liquidity services and lock-in services. For example, ETH liquidity at Binance Earn is currently allocated in the following way:
70% in Spot wallet and 30% in Binance Earn
In Binance Earn, 55% on-chain for ETH 2.0, 42% in Save to Lend, and 3% in liquidity pool
On-chain staking rates and loan-to-value savings rates are monitored
Binance Earn carefully monitors on-chain staking and LTV (loan-to-value) ratios. The current figures related to ETH at Binance Earn are as follows (for reference purposes):
On-chain staking ratio (17% of transactions) and loan-to-value ratio (33%)
Binance ETH 2.0 also brings a liquidity solution: The BETH/ETH trading pair is explained in more detail below
User guide
Binance Earn provides users with information on how to use services responsibly through the platform. From FAQs to how-to videos and articles on Binance Academy, users have a variety of learning options to make informed investments.
Learn about selected Binance Earn products
Our monetization platform offers a wide range of products. Please read and consider the brief descriptions below. As always, we provide additional information via the Binance Earn website and educational materials.
ETH 2.0 product
Binance ETH 2.0 provides an easy way for users to participate in the Ethereum 2.0 network and reap on-chain rewards.
Reduced minimum investment required to stake ETH 2.0
With Binance Earn, users do not need to provide the 32 ETH required when staking directly via Ethereum. As a result, barriers to entry are lower and the initial capital required to invest is reduced. With just 0.0001 ETH on Binance Earn, users can access ETH 2.0 staking without that significant investment.
Protection from fines and cuts
For some products, Binance limits the risk of your stake being cut or penalized. This happens when nodes are involved in malicious activity or have downtime. In some cases, Binance Earn bears the risk of the cut to the user and will return your staked tokens if a problem occurs. See our terms & conditions for more details.
Provide liquidity to stake locked ETH 2.0
Locking up cryptocurrency increases risk because you cannot move assets if market conditions change. The ETH deposited to stake ETH 2.0 is locked but Binance Earn provides all participants with transferable BETH tokens. This token can be exchanged 1:1 with ETH when ETH 2.0 goes live. BETH unlocks your liquidity and can reduce the risks associated with token lock-ups.
Please note that the market determines the BETH/ETH trading rate, meaning it can fluctuate. Rewards are also calculated based on the BETH in your wallet. If you trade BETH for ETH, you will no longer receive staking rewards.
Know where your staked ETH goes
100% of users' deposited ETH on Binance Earn is staked on the Ethereum network. Binance is and will not use these funds for other purposes such as providing collateral or lending.
Economical products
Flexible savings can be withdrawn at any time
Users can register and withdraw assets at any time while getting daily rewards. That means your assets remain liquid and available at any time.
Fixed savings can stop at any time
Binance Earn users staking in Fixed Savings do not have to worry about the risks associated with locking up funds. Assets can be removed at any time but you will lose accumulated rewards.
Reserve for Savings Fund
In most cases, assets registered with Binance Savings are used to lend to users in need. Currently, Borrowers are required to overcollateralize their loans upon issuance; At any given time, only 60% of savings deposits are loaned out.
These are efforts to ensure that Savings users' deposited assets remain withdrawable, even when market prices plummet. Specifically, for ETH, the loan-to-savings ratio is 33%, so Binance Earn has reserves to address market fluctuations.