Binance US Introduces Ethereum Staking Program Ahead of Merger
Binance US has announced the launch of an Ethereum staking service for its users with quite attractive returns. The renowned Exchange will offer a 6% starting Annual Percentage Yield (APY). According to the Binance US blog post, users will be able to stake a minimum of 0.001 ETH. Users need 32 ETH to become an Ethereum validator and earn rewards on the network.
Nevertheless, users will be able to stake minimum amounts and earn considerable rewards on them. The Exchange says the move is in line with its ambition to offer the best products and services to its consumers around the world. The announcement of the new staking service was made before the expected merger of the Ethereum network.
Binance US supports the merger of Ethereum
Ethereum is transitioning its consensus mechanism from Proof-of-Work to Proof-of-Stake. The transition is projected as one of the most significant events in the history of cryptocurrencies and the blockchain. According to the announcement made by Binance US, ETH staking rewards will be distributed after Ethereum’s “The Merge” event. The merger is expected in mid-September.
Binance CEO Brian Shroder said,
«ETH plays a critical role in the broader Web3 ecosystem, and as the Ethereum network continues to transition into The Merge, we are delighted to now offer ETH stakes with some of the highest APY rewards in the industry..»
Also, the Exchange intends to continue building attractive and effective staking offers. Their intention is to provide value to their customers through these initiatives. Binance US now offers better APYs than its competing exchanges. Coinbase offers 3.25% APY, while Nexo and BlockFi offer 4% APY.
Binance US claims that it offers staking services through a user-friendly interface. In addition, users are allowed to self-recover tokens in a few clicks. This allows the Exchange to increase the overall APY rate. Also, the Exchange offers staking for different assets, including ADA, DOT, BNB and MATIC. It continues to focus on product offerings requested by customers.
There is a possibility that the Ethereum merger will lead to a new hard fork. Then, Binance will continue with the ETH token for the PoS version. However, if there is no new fork, users can easily deposit and withdraw ETH tokens. Binance does not plan to support future ETH forks. However, the situation will only clear up when the Ethereum network fork is complete.