Binance launches liquid staking token, joins growing market after Ethereum's latest upgrade

Quick Take

  • Binance has launched a new liquid staking token on its Ethereum staking service.
  • Staking withdrawals were enabled following Ethereum’s Shapella upgrade, before this, liquid staking tokens were the best way to access staking and ensure access to tokens.

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. 

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