On September 7, Binance.US announced the launch of its Ethereum staking service, which offers its users an initial annual return of 6%.
According to the Binance.US blog, this new feature will allow users to start accumulating ETH with a minimum of 0.001 ETH (~$1.62). The amount that can be reached is much more than the 32 ETH required to become an Ethereum validator.
“While there is a requirement of 32 ETH to bet directly through the Ethereum network, users can bet on Binance.US with a competitive minimum of just 0.001 ETH.”
It is important to note that rewards earned through staking will be distributed when Ethereum completes its merge event, moving from Proof of Work (PoW) to Proof of Stake (PoS).
Binance US supports Ethereum integration and its role in the ecosystem
Brian Shroder, CEO of Binance US, said the Binance US team was excited about the launch of this feature. Additionally, they are looking to create comprehensive new engagement offerings that provide “greater customer value”.
“ETH plays an important role in the broader Web3 ecosystem, and as the Ethereum network continues to move to The Merge, we are now pleased to offer an ETH staking with some of the highest reward APYs in the industry.”
Currently, Binance APY is better than its competitors. Just for reference, Nexo offers 4% APY, Blockfi offers 4% APY, Lido Finance offers 3.5% APY while Coinbase offers 3.25% APY
This gave the exchange the opportunity to double the number of tokens on offer, including ADA, DOT, BNB, and MATIC, all of which were launched recently.
What will Binance do about Ethereum forks?
As recently reported by CryptoPotato, the upgrade of Ethereum is expected between September 15-16. However, the merger could lead to a new fork that would affect Binance’s ability to respond to protect its users.
In the absence of a new fork, users will be able to deposit and withdraw ETH without any hassle. However, suppose that Ethereum splits into other chains that include new tokens. In this case, Binance will hold the Ethereum PoS token “ETH” and add the amount of tokens available in clients’ wallets prior to the merger.
The exchange is not even close to the idea of supporting the ETH fork in the future. However, Binance announced that the new tokens will be able to withdraw from the platform without much difficulty, as they will not be listed immediately until they go through the verification process, just like any other token.
It appeared after US Binance launched its 6% APY Sticking Ethereum service for the first time on CryptoPotato.