Binance US launches low-barrier Ethereum staking ahead of The Merge
Users can receive up to 6.0% APY with a minimum stake of 0.001 ETH, but risks apply .
New
On Wednesday, the US subsidiary of cryptocurrency exchange Binance announced that it would introduce an Ethereum staking program with annual percentage returns of up to 6.0%. Unlike direct staking on the Ethereum network, which would require 32 Ether (ETH), only 0.001 ETH would be required under the new service introduced by Binance US. Regarding the development, Binance US CEO Brian Shroder said:
"ETH plays a vital role in the wider Web3 ecosystem. As the Ethereum network continues its transition to The Merge, we are excited to offer ETH staking with some of the highest APY rewards in the industry. "
Staking returns are partly boosted by features such as Binance US's automatic retake, which allows compounding of returns. However, users cannot withdraw ETH at this time, and rewards will not be distributed until Ethereum transitions from a proof-of-work blockchain to a proof-of-stake via the next stake for the first time. Merge update scheduled for September 15th. "Shanghai Upgrade" subject to successful merger, users will then be able to withdraw their staked ETH.
Due to the complicated nature of the upgrade, there is no guarantee that the transition will be smooth. User funds are therefore subject to risks such as prolonged return of funds or loss of principal if the upgrade fails. Binance US claims that it has no control over how and the final amount of staked ETH investors that can be redeemed. At press time, 21.6% of Ethereum nodes are still out of sync with The Merge upgrade.
Users can receive up to 6.0% APY with a minimum stake of 0.001 ETH, but risks apply .
New
On Wednesday, the US subsidiary of cryptocurrency exchange Binance announced that it would introduce an Ethereum staking program with annual percentage returns of up to 6.0%. Unlike direct staking on the Ethereum network, which would require 32 Ether (ETH), only 0.001 ETH would be required under the new service introduced by Binance US. Regarding the development, Binance US CEO Brian Shroder said:
"ETH plays a vital role in the wider Web3 ecosystem. As the Ethereum network continues its transition to The Merge, we are excited to offer ETH staking with some of the highest APY rewards in the industry. "
Staking returns are partly boosted by features such as Binance US's automatic retake, which allows compounding of returns. However, users cannot withdraw ETH at this time, and rewards will not be distributed until Ethereum transitions from a proof-of-work blockchain to a proof-of-stake via the next stake for the first time. Merge update scheduled for September 15th. "Shanghai Upgrade" subject to successful merger, users will then be able to withdraw their staked ETH.
Due to the complicated nature of the upgrade, there is no guarantee that the transition will be smooth. User funds are therefore subject to risks such as prolonged return of funds or loss of principal if the upgrade fails. Binance US claims that it has no control over how and the final amount of staked ETH investors that can be redeemed. At press time, 21.6% of Ethereum nodes are still out of sync with The Merge upgrade.
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