Binance is rebranding its Ethereum staking product and introducing a liquid staking token less than two weeks after Ethereum’s Shapella upgrade enabled staking withdrawals.
The token, called Wrapped Beacon ETH (WBETH), will allow Binance users to participate in decentralized finance protocols off the exchange. Users will continue to acquire Ethereum staking rewards while doing so. From Thursday, users can wrap Beacon ETH (BETH) tokens to WBETH and unwrap WBETH to BETH tokens on the exchange’s Ethereum staking page. There will be zero fees for the wrapping and unwrapping of these tokens.
The initial conversion is one-to-one, but this is subject to change since the value of WBETH will increase over time by the daily APR on Ethereum Staking, the announcement noted.
Liquid staking tokens allow holders to stake ether and receive a derivative token that represents the locked cryptocurrency. This derivative can then be used across various crypto markets, effectively making the locked coins liquid.
Lido dominates staking
The staking market is heavily dominated by Lido, which holds around 31% of the market share, according to data aggregated by Hildebert Moulie, a data scientist at Dragonfly Capital. Lido Finance’s total value locked (TVL) surpassed 6 million ether (ETH), equivalent to over $12 billion, days after the Shapella upgrade on Ethereum.
Bybit’s Head of Crypto Insights, Charmyn Ho, told The Block last week that liquid staking is “poised to benefit the most from the Ethereum Shapella upgrade. Liquid staked tokens offer greater capital efficiency and flexibility compared to staked tokens, as traders can earn staking rewards while retaining the ability to move their funds freely.”
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