Wrapped Beacon ETH (WBETH) is a value-accruing liquid staking token, where 1 WBETH represents 1 staked ETH, along with the staking rewards accrued on ETH Staking since 2023-04-27 08:00 (UTC). You can use WBETH to participate in DeFi protocols outside Binance and other products on Binance, while still receiving the corresponding ETH Staking rewards accrued.
You can stake ETH (or wrap BETH tokens) to WBETH or redeem your WBETH to ETH on the ETH Staking page at zero fees. While the initial conversion ratio between BETH and WBETH is 1:1 from 2023-04-27 08:00 (UTC), the value of 1 WBETH may gradually exceed that of 1 ETH over time due to the accumulation of staking rewards.
Key differences between BETH & WBETH
BETH
WBETH
Definition
1 BETH = 1 staked ETH
1 WBETH = 1 staked ETH + staking rewards accrued on ETH Staking after 2023-04-27 08:00 (UTC)
Rewards Calculation & Distribution
You will receive ETH Staking rewards from the Ethereum Network in the form of BETH, based on the BETH holdings in your Spot Wallet.
The ETH Staking rewards will be distributed to your Spot Wallet daily.
Rewards are compounded to increase the value of your WBETH.
Please note that rewards are not directly distributed to your Spot Wallet. Instead, The WBETH:ETH conversion ratio is updated daily to reflect the rewards earned from the staked ETH.
To redeem your ETH Staking rewards in the form of ETH, you can redeem your WBETH tokens.
Please note that the ETH you receive upon redemption will depend on the WBETH:ETH conversion ratio.
Utilities
Earn ETH Staking rewards, which will be distributed daily to your Spot Wallet.
Earn ETH Staking rewards, which is compounded to increase the value of each WBETH.
Trade on the Binance Spot Market.
Use as collateral for Crypto Loans and VIP Loan.
Use as collateral on Portfolio Margin for Margin and Futures.
Flexibility to access DeFi protocols and services outside Binance while still remaining eligible to earn ETH Staking rewards through your WBETH holdings.
Mint WBETH directly using ETH on BNB Smart Chain and the Ethereum Network.
Supported Networks
BNB Smart Chain
BNB Smart Chain and Ethereum Network, with more to come.
Example:
If you staked 100 ETH or wrapped 100 BETH WBETH on 2023-04-27 (conversion ratio = 1:1 by that time), you would receive 100 WBETH. You are eligible for ETH Staking rewards. The ETH amount you can earn depends on the conversion ratio of WBETH to ETH on the day you redeem the WBETH.
For example, 365 days have passed after 2023-04-27, and the total cumulative ETH Staking rewards for that period is 5%. The WBETH:ETH conversion ratio would have become 1:1.05. If you decide to redeem 100 WBETH during that time, 105 ETH (100 ETH principal and 5 ETH rewards) will be distributed to your Spot Wallet.
1. Log in to your Binance account and go to [Earn] - [ETH] - [ETH Staking].
2. Click [Stake ETH].
3. Enter the BETH amount you want to wrap and you’ll see the WBETH amount you can get. Click [Wrap].
Note: The BETH to WBETH conversion ratio is not 1:1, as 1 WBETH represents 1 staked ETH plus the staking rewards accrued since 2023-04-27 08:00 (UTC). Due to the accumulation of staking rewards, the value of 1 WBETH progressively exceeds that of 1 ETH. The ratio is updated daily to reflect the rewards earned from the staked ETH of the previous day.
4. You’ll see a second confirmation window. Read the terms and conditions and check the boxes. Click [Confirm].
5. You’ve successfully wrapped your BETH. You can view your wrapped asset balance and conversion rate on the WBETH page.
You can also view your transaction history by clicking the transaction history icon, or view the ETH rewards accrued in your WBETH by clicking [WBETH Reward History].
How to redeem WBETH into ETH?
1. Log in to your Binance account and go to [Earn] - [ETH] - [ETH Staking] - [Redeem].
2. Enter the amount of WBETH you want to redeem from your balance and click [Redeem].
3. The redeemed ETH will be returned to your Spot Wallet after the waiting period.
Risk Warning: Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. APR is an estimate of rewards you will earn in cryptocurrency over the selected timeframe. It does not display the actual or predicted returns/yield in any fiat currency. APR is adjusted daily and the estimated rewards may differ from the actual rewards generated. Not financial advice. For more information, see our Terms of Use and Risk Warning.
1. Can I participate in ETH staking on Binance without wrapping BETH?
Yes. You can keep BETH and it’s not necessary to wrap BETH to WBETH. The same staking rewards are given to both tokens. However, WBETH has more use cases. For example, WBETH tokens can be used as loan collateral, trading against ETH, liquidity farming, as well as many other DeFi applications.
2. How can I participate in ETH Staking and use the staked ETH to participate in DeFi protocols?
You can wrap BETH and get WBETH, which can be withdrawn from Binance to self-custody wallets. Binance is working with multiple DeFi protocols to expand WBETH use cases.
3. Can I hold BETH in a self-custody wallet on BNB Smart Chain?
BETH holders can deposit their tokens into Binance or keep them in self-custody wallets. An on-chain smart contract has been provided to convert BETH to WBETH at a 1:1 fixed rate on BNB Smart Chain in June 2023. Please note that Binance has ceased withdrawals for BETH starting from 2023-04-26 08:00 (UTC).
4. Do I earn Simple Earn rewards if I subscribe to WBETH Simple Earn Flexible Products?
There are no Simple Earn rewards for WBETH. WBETH Simple Earn Flexible Products is for users who would like to use WBETH as collateral in Binance Loans (Flexible Rate).
Notes:
You can continue holding BETH in your Spot Wallet to receive BETH rewards daily. It’s not mandatory to wrap your BETH holdings to WBETH.
Each WBETH token will accrue ETH Staking rewards daily, in accordance with the daily APR on ETH Staking. You can redeem your WBETH tokens to redeem the corresponding on-chain staking rewards in the form of ETH based on the daily BETH/WBETH conversion rate.
Details on the BETH/WBETH conversion rate:
The BETH/WBETH conversion rate is dynamic, and will be updated daily at 00:00 (UTC), starting from 2023-04-28 00:00 (UTC).
Since 2023-04-27 23:45 (UTC), the [Stake], [Wrap], and [Redeem] functions are temporarily paused each day from 23:45 (UTC) till 00:15 (UTC) on the next day to support the daily updates of the BETH/WBETH conversion rate.
All updates to the daily BETH/WBETH conversion rate are dependent on the daily APR on ETH Staking.
All BETH/WBETH conversions on the WBETH page will be rounded down to eight decimal places.
You can refer to the following smart contract addresses for WBETH on BNB Smart Chain and the Ethereum Network.
WBETH carries the value of 1 BETH and the staking rewards it accrues. While the value of BETH and ETH is pegged at a 1:1 ratio, the value of WBETH versus ETH and BETH continues to increase, reflecting the staking rewards locked within Ethereum. You can check the real-time conversion rate from the Binance ETH Staking page.
6. Is WBETH safe?
WBETH is safe because you can redeem it back to ETH anytime with zero fees on the ETH Staking page. However, please do your own research before participating in any DeFi project.
