WBETH, or Wrapped Beacon ETH, is a liquid staking token that represents staked ETH and accrued rewards since April 27, 2023, allowing users more flexibility than conventional staking methods. WBETH launched on April 24, 2023, coinciding with Binance's rebranding of their ETH Staking 2.0 to ETH Staking. ^[1][6]

Overview

WBETH operates on a 1:1 ratio with staked ETH and accumulates rewards over time. Unlike traditional staking, WBETH enables users to freely trade, transfer, or utilize their staked ETH while earning rewards. The conversion ratio may gradually exceed 1 ETH due to ongoing reward accumulation. Users can stake ETH to WBETH, redeem WBETH to ETH with zero fees, and mint WBETH on Binance ETH Staking or the Ethereum Network. This token introduces new possibilities for yield outside traditional staking platforms. ^[2][3]

Use Cases

Spot Trading on Binance

WBETH facilitates spot trading on the Binance platform. By buying and holding WBETH, users can accumulate ETH staking rewards. Unlike daily staking rewards that are not directly distributed to the Binance Spot Wallet, they auto-compound at the token's conversion rate until WBETH is unwrapped to ETH. ^[4][5]

Earning ETH Staking Rewards with WBETH on Chain

Users have the option to mint WBETH on various DeFi platforms such as PancakeSwap or through on-chain smart contracts on BNB Smart Chain or Ethereum. This allows them to redeem WBETH to ETH either via Binance ETH Staking or on-chain smart contracts, providing flexibility and accessibility. To earn daily rewards, users can stake ETH for WBETH which represents the amount of ETH staked. Holding this WBETH allows users to earn yield at a rate equivalent to the APY at the time of staking. The WBETH held by a user can then be redeemed in exchange for ETH. ^[5]

Liquidity Farming

Users contribute to liquidity pools on decentralized exchanges (DEXs) like Binance Liquid Swap, PancakeSwap, Curve, Balancer, and Maverick. By pairing WBETH with other tokens, users earn rewards, though caution is advised due to potential impermanent loss risks. ^[5]

Lending and Borrowing Protocols

Leveraging WBETH within lending and borrowing protocols enhances capital efficiency. Users can use WBETH as collateral to borrow other assets, exploring opportunities on platforms like Binance Loans and VIP Loan. Borrow limits and loan-to-value (LTV) ratios can be checked on respective pages. ^[5]

Structured Products and Yield Aggregators

WBETH is integral to accessing structured yield tokens, enabling participation in advanced DeFi strategies. Platforms like Pendle offer opportunities to optimize returns on crypto assets through structured products and yield aggregators. ^[5]

Restaking Protocols

Restaking involves utilizing ETH and liquid-staked tokens like WBETH for additional rewards. Certain restaking protocols, such as EigenLayer, support restaking natively-staked ETH and liquid-staked tokens. This widens WBETH's application on the Ethereum network and provides holders with extra earning potential. ^[5]