According to a post on the Binance US blog, the new feature will allow users to stake ETH using a minimum of 0.001 ETH (about $1.62), a much more accessible amount than the 32 ETH required to be an Ethereum validator.
“While there is a 32 ETH requirement for staking directly through the Ethereum network, users can stake on Binance.US with a competitively low minimum of just 0.001 ETH.”
It also notes that the rewards earned through staking will be distributed after Ethereum completes the Merge process, moving from Proof of Work (PoW) to Proof of Stake (PoS).
Binance US supports Ethereum Merge
Brian Shroder, CEO of Binance US, said that the team is looking to create new comprehensive staking services that deliver “greater value for customers.”
“ETH plays a critical role in the overall Web3 ecosystem, and as the Ethereum network continues to transition towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry,”
Currently, Binance is offering better APY than its competitors. Nexo offers APY 4%, Blockfi – APY 4%, Lido Finance – APY 3.5% and Coinbase – APY 3.25%.
This has allowed the exchange to increase the number of offered tokens, including ADA, DOT, BNB, and MATIC, all of which were launched recently.
What will Binance do if Ethereum Fork?
As reported by Bitcoinist, the Ethereum upgrade is expected to happen around September 15. However, the Merge could lead to a new fork that could affect Binance’s reaction to protect users.
Without a new fork, users can easily deposit and withdraw their ETH. However, if Ethereum splits into other chains related to the new token, Binance will hold “ETH” for the PoS version of Ethereum, crediting the number of tokens available in the customer’s wallet before the Merge.
The exchange has no intention of supporting Ethereum forks in the future. Binance has announced that new tokens will be able to withdraw from the platform without any inconvenience, as they will not be listed immediately until they go through the verification process, like any other token.
Follow our channels for more crypto news:
- Cryptory Insights: https://t.me/CryptoryInsights
- Cryptory Global Community: https://t.me/CryptoryCommunity
- Facebook: https://www.facebook.com/CryptoryNetwork
- Twitter: https://twitter.com/CryptoryNetwork