Binance supports ETH 2.0 staking and is an alternative to DIY validators

Binance supports ETH 2.0 staking and is an alternative to DIY validators

By Behiver | behiver | 6 Dec 2020


Ethereum 2.0 is live from 1st of December and staking is increasing day by day. We are in the Phase 0 when the beacon chain is alive and accepting validators (stakers) through a one-way deposit contract on the Ethereum blockchain. An important thing to remember is that unstaking will not be possible until the next phase which might be as long as one to two years or more. With this going one anyone having ETH can become a validator with a minimum of 32 ETH or participate in staking pools where he can get a return based on its sole participation amount.

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Binance just launched the ETH 2.0 staking pool with an APY between 5% and 20% with low threshold entry points for the users wanting to onboard it. What I like about it as I don't want to venturi into the all validators tech and hurdles that come with it is the fact that Binance pays for users to build validators, assumes the risk of on-chain penalty and forfeiture and will ensure proportional distribution of on-chain profits to the users. Some would say that "not your keys not your coins", but for beginners or those not wanting to invest in hardware, nodes and validators maintenance I believe it is a good enough solution.

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Along with the ETH2 pool in addition to it Binance will issue BETH, a new wrapped token (BToken) that is 1:1 pegged to ETH on the Ethereum blockchain. This is intended to support users who trade or hold ETH on Binance during the 18-24 months needed to lock in ETH on-chain. The participating users can use BETH to redeem ETH after the formal launch of ETH 2.0 and Binance will help keeping the tokens safe no matter what happens during the ETH 2.0 rollout.

And the cherry on top of this is that Binance is launching also a promotion entitled "Participate in ETH2.0 Staking and Win Double Rewards". This brings more benefits in those trusting Binance during the staking process.

During the activity, all users with completed KYC verification will receive an additional BNB reward equivalent to BETH while also earning the staking rewards. The users' rewards during the activity = the BETH rewards obtained by staking ETH + equivalent BNB to BETH income.
This activity will be running from December 2, 0:00 am to December 16, 0:00 am (UTC).

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To summarize it all let's see the benefits of using Binance Eth2 Staking.

  • Leo entry points that can start from 0.0001 ETH compared to the 32 ETH Validators threshold
  • Funds are SAFU on Binance through the use of increase security, cold wallets and other hardening solutions
  • Lower tech barriers for beginners which don't need to take care of any hardware requirements, validators uptime and other maintenance activities
  • Easy liquidity through the BETH token pegged 1:1 to ETH, but which will still allow trading activities

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Behiver
Behiver

Everything on diversity. Crypto enthusiast, stocks and finance interested, blockchain games and anything related to these.


behiver
behiver

Cryptocurrency and finance topics

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