On September 7th, Binance US announced the launch of an Ethereum Staking service, offering its users an initial annual percentage yield (APY) of 6%.
According to the Binance US blog post, this new feature will allow users to start staking ETH using a minimum of 0.001 ETH (approximately $1.62). An amount much more accessible than the 32 ETH needed to become an Ethereum validator.
It is important to note that rewards earned through staking will be distributed once Ethereum finalizes its Merge event, transitioning from Proof of Work (PoW) to Proof of Stake (PoS).
Brian Shroder, CEO of Binance US, said that the Binance US team was excited to launch this feature. In addition, they are looking to create new comprehensive staking offerings that bring “greater value for customers.”
ETH plays a critical role in the broader Web3 ecosystem, and as the Ethereum network continues to transition towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry,
Currently, Binance is offering better APYs than its competitors. Just for reference, Nexo offers 4% APY, Blockfi 4% APY, Lido Finance offers a 3.5% APY whereas Coinbase goes with 3.25% APY
This has provided an opportunity for the exchange to double the number of tokens offered, including ADA, DOT, BNB, and MATIC, which were all recently launched.
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