The U.S. division of cryptocurrency exchange Binance (1) said that it would launch an Ethereum Staking program with yearly yields of up to 6.0%. Unlike direct staking on the Ethereum Network, which requires 32 ETH, the new service from Binance U.S. simply calls for 0.001 ETH.
As the Ethereum Network continues to migrate towards The Merge, we are happy to offer ETH staking along with some of the highest APY payouts in the industry, says Brian Shroder, CEO of Binance US, addressing the development. "ETH has a critical role for the broader web3 ecosystem," he says.
Users cannot un-stake ETH at the moment, and rewards won't be given out until Ethereum first switches from a proof-of-work blockchain to a proof-of-stake blockchain through the upcoming Merge upgrade, which is scheduled for September 15. Staking yields are a part that boosts features like Binance US automatic re-stake that enable the compounding of returns.
Then, subject to a successful Merge completion, customers can withdraw their staked ETH through the Shanghai Upgrade (2). Although the update is complicated, there is no guarantee that the transfer will be painless. Thus, the user's funds are still vulnerable to hazards like a protracted cash return or principal loss if the upgrade fails.
Around 21.6% of Ethereum nodes (3) are still not synced to the Merge Upgrade at the time of publication, according to Binance US, which said it has no control over the manner and final value of the stake ETH investors can receive back.
Binance U.S. offers the highest APY staking rate among the top US cryptocurrency exchanges. Additionally, it has doubled the number of freshly introduced digital assets that may be staked, including ADA, DOT, BNB, BAND, and MATIC (4). Additionally, it launched several other items that customers had requested, including zero-fee BTC trading that allowed users to convert tiny crypto balances to BNB.
This new project aims to make ETH/BUSD trading more accessible by proposing that makers and takers pay nothing when exchanging across specific spot pairings. Binance said it would extend the fee waiver and provide more opportunities to benefit from the cost-saving initiative in response to its favorable reception.
The final phase of the Ethereum Merge will take place at the Paris event, which will happen after the Bellatrix upgrade (5) and will be triggered when the Terminal Total Difficulty TTD reaches 58750000000000000000000, which is anticipated to happen around September 15. When the execution layer reaches this TTD, a Beacon Chain validator will create the subsequent block, finalizing it to signify the full conversion of Ethereum's blockchain to the proof-of-stake mechanism.
The Ethereum Foundation states that users of Ethereum do not need to do anything with their Ether or other Ethereum-based assets during the Merge, but they should be alert and on the lookout for fraud.