Binance US, a US-based subsidiary of the world’s largest cryptocurrency exchange, is now offering Ethereum staking with an annual percentage yield (APY) of 6% – a figure that is a huge step up from major competitors such as Lido and Coinbase. which offers 3.5 percent. and 3.25 percent APY, respectively. In an announcement, Binance US said that users will be able to competitively stake ETH for as little as 0.001 ETH through the platform. In order to bet ETH directly through the Ethereum network, a user would otherwise have to stake at least 32 ETH.
Brian Schröder, CEO of Binance US, said in a press release, “As the Ethereum network continues to move towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry.”
Data from Staking Rewards shows that the number of users betting on ETH increased to 54,800 from last month’s figures. However, the average revenue from ETH stake fell to $93.7 million (approximately Rs 7,500 crore) on August 13 from a high of $1.68 billion (approximately Rs 13,400 crore). This decrease was mainly due to a drop in the price of ETH by over $2,000 (approximately Rs. 1,60,000) in mid-August.
The “merge” refers to Ethereum’s long-awaited upgrade that combines the network’s consensus layer, known as the Beacon Chain, with its execution layer, which is the current Ethereum mainnet. The merge will complete Ethereum’s transition from proof-of-work consensus mechanisms to proof-of-stake.
The merge is currently expected to take place between September 13 and 15. After that time, Ethereum users will be able to stake their ETH to help secure the network while earning passive ETH rewards in the process.
Users will be allowed to withdraw their staked ETH from the Ethereum network following a further upgrade referred to as the “Shanghai Upgrade” depending on the successful completion of the merge upgrade.
However, due to the complexity of the upcoming merge upgrade, there is no guarantee of a smooth transition and users’ funds are subject to risks such as long return on invested funds or loss of funds in case the upgrade fails.