Binance US Launches New Ethereum Staking Ahead Of The Merge
Binance US said on Wednesday that it would launch an Ethereum staking program with yearly percentage rewards of up to 6.0%.
Unlike direct staking on the Ethereum network, which requires 32 Ether (ETH), the new service introduced by Binance US requires only 0.001 ETH. Brian Shroder, CEO of Binance US, commented on the development:
“ETH plays a critical role in the broader Web3 ecosystem. As the Ethereum network continues to transition towards The Merge, we are thrilled to offer ETH staking with some of the highest APY rewards in the industry.”
Staking yields are partly improved by features like Binance US’ automatic restake, which allows for the compounding of returns. Users, however, cannot unstake ETH at this time, and rewards will not be distributed until Ethereum first switches from a proof-of-work blockchain to a proof-of-stake blockchain via the planned Merge upgrade on September 15.
Users will subsequently be able to withdraw their staked ETH via a future Shanghai upgrade subject to the successful completion of The Merge.
There is no guarantee that the transition will be smooth due to the complexity of the upgrade. If the update fails, users’ funds are thus vulnerable to hazards such as a delayed return of funds or a loss of capital. Binance US claims it has no control over how much ETH investors can receive back. At the time of publication, 21.6% of Ethereum nodes had not yet been upgraded to The Merge.
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