In the Ethereum ecosystem, staking ETH has become a popular method of passive income after the transition to PoS. However, ETH locked in staking cannot be used in DeFi. The solution to this problem is **WBETH (Wrapped Beacon ETH)**, a tokenized version of ETH by Binance. Let's figure out what it is, how it works, and where it is applied.
**1. What is WBETH?**
WBETH is a **wrapped version of ETH**, issued by Binance for staking. It represents:
- **Tokenized ETH staking** (1 WBETH ≈ 1 ETH + accumulated staking rewards)
- **Liquid asset** that can be used in DeFi while your ETH is participating in staking
**Key Features:**
✅ 1 WBETH = 1 ETH + accumulated staking rewards
✅ Can be traded, transferred, and used in DeFi
✅ Supported by Binance (less risk than third-party solutions)
**2. How does WBETH work?**
The process looks like this:
1. **The user stakes ETH through Binance**
- ETH is locked in staking on the Beacon Chain
2. **Receives WBETH at a 1:1 ratio**
- For example, for 5 ETH staked, you will receive 5 WBETH
3. **WBETH is increasing in value**
- Every day, staking rewards are added to the WBETH balance
4. **WBETH can be used in DeFi or exchanged back for ETH**
3. Where to use WBETH?**
**🔹 On Binance**
- Trading (WBETH/ETH, WBETH/USDT, etc.)
- Participation in Launchpool
**🔹 In DeFi (via BSC or Ethereum)**
- Lending (Aave, Venus)
- Farming (PancakeSwap, Uniswap)
- As collateral in protocols (MakerDAO, Lido)
**🔹 Other Options**
- Transfers between wallets
- Use in cross-chain applications
**📈 Automatic Reward Accumulation**
- No need to manually claim rewards
- WBETH gradually increases in value relative to ETH
**🔒 Binance Security**
- Less risk than unknown staking pools
**5. Risks and Limitations**
**⚠️ Volatility of the WBETH/ETH exchange rate**
- WBETH may trade at a premium/discount to ETH
**⚠️ Dependence on Binance**
- If Binance freezes withdrawals, exchanging WBETH for ETH will become more difficult
**⚠️ Binance Fees**
- There may be small fees when converting WBETH back to ETH
**6. How to get WBETH?**
1. **Through staking ETH on Binance**
- Stake ETH → automatically receive WBETH
2. **Buy on the market**
- Trading pairs WBETH/ETH, WBETH/USDT are available on Binance
**Conclusion**
WBETH is a convenient solution for those who want:
- Stake ETH while maintaining liquidity
- Use "frozen" ETH in staking for DeFi
- Automatically receive staking rewards without extra actions
If you stake ETH on Binance, WBETH is a great way not to miss out on earning opportunities in DeFi! 🚀
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