Liquid Staking
Last updated
Was this helpful?
Last updated
Was this helpful?
We are happy to present you with a release of liquid staking on Biswap! It is an innovative and secure solution integrated into the DEX platform as a part of the Biswap x Binance Earn partnership. Earn staking yields with no liquidity spent.
Under the new feature implementation, Biswap officially listed a WBETH token. Therefore, you may execute fast swaps with Auto Router and use WBETH for making a limit order with a 0% fee. This derivative plays a crucial role in liquid staking and brings profitable opportunities within and beyond the platform. Moreover, now you can become a BETH/ETH Liquidity Provider at Biswap V3 and earn 80% LP rewards.
Take into account that this functionality works only on BNB Smart Chain.
Liquid staking belongs to the decentralized finance realm and offers users a way to earn yields from staking their tokens while still maintaining their liquidity available for use in other transactions or investments. This enables crypto holders to participate in network security and earn rewards without sacrificing the flexibility of their assets. After the Ethereum network had completed the merge to Ethereum 2.0, by upgrading the consensus mechanism of ETH to Proof of Stake, liquid staking began to offer users the opportunity to stake their ETH and earn rewards in return through the WBETH token.
Liquid staking is a great way to earn ETH rewards to a crypto wallet and continue actively using liquidity. However, what are these ETH rewards? ETH rewards — a difference in price between ETH and WBETH. Since WBETH always has a higher price than ETH, the percentage of the difference constantly changes according to the demand. Thus, ETH staking rewards are accumulated not by increasing quantity but by rising value relative to BETH (1 BETH = 1staked ETH).
Example: When you stake your ETH, you receive a tokenized representation of your staked ETH, which in your example is WBETH (wrapped BETH). This WBETH represents your staked ETH and the staking rewards you are earning.
As time passes and staking rewards accumulate, each unit of your WBETH becomes worth more than 1 ETH because it represents your original staked ETH plus the rewards you've earned.
So, if you initially staked 10 ETH and received 10 WBETH, and over time, your staking rewards amounted to 2 ETH, each WBETH would represent 1.2 ETH (10 ETH original stake + 2 ETH rewards = 12 ETH, divided by 10 WBETH = 1.2 ETH per WBETH).
When you swap your WBETH back to ETH, you will receive more ETH than you initially staked, reflecting the staking rewards you earned during the staking period. In our example, swapping your 10 WBETH would give you 12 ETH.
Note that all numbers are hypotheticals. The actual numbers may be impacted by the conversion rate at wrap/unwrap, the holding period of WBETH, and on-chain ETH 2.0 staking APR, etc.
In contrast to traditional staking methods, liquid staking users can still use and have liquidity to their ETH while it is being staked. How? The WBETH is a solution.
BETH is a wrapped token released by Binance that is pegged to ETH (1:1) on the Ethereum blockchain.
WBETH is a wrapped BETH that serves as a liquid staking token confirming pool participation and can be used for lending, trading, and collateral throughout DeFi.
Take a look at the benefits WBETH has:
Flexible Earn
Holding WBETH users can use the token to profit from services on the platform and outside Biswap while remaining eligible to earn ETH staking rewards.
APR Rewards
Each WBETH token you hold will accrue ETH staking rewards from the Ethereum network based on the daily APR.
Once users staked ETH to the liquid staking pool, they receive a minted WBETH token and ETH staking rewards in their wallet. The price of WBETH may grow even when you hold it in your wallet or use it in earning features. The WBETH value growth according to the ETH is represented in APRs.
It means that when you get WBETH, you have a double profit potential: earning from the price difference and multiplying WBETH by DeFi on-chain services.
Note that the price WBETH and ETH difference ratio always change.
It’s time to apply the gained knowledge and experience liquid staking on practice at Biswap DEX website. We’re welcoming you to review how everything works!
Head over to the Biswap home page and connect your wallet. Ensure you have ETH in your wallet on either Ethereum or BNB Chain network to convert to WBETH.
Open the ‘Earn’ tab and select ‘Liquid Staking’.
Input the ETH amount you want to convert.
Click ‘Approve’ to get a WBETH token. Repeat this action to confirm the transaction in your wallet. The WBETH tokens will be sent to your wallet.
Note that the value of the WBETH token will increase against ETH due to the accrued staking rewards.
In order to receive your earned ETH staking rewards you need to convert the WBETH you’ve gotten to your crypto wallet via the exchange page at Biswap.
Go to the ‘Trade' tab, and click on the ‘Exchange’ page.
Select WBETH as the input token and ETH as the output token.
Insert the WBETH amount you want to exchange and click ‘Swap’.
Confirm the transaction in your wallet
Good job! ETH will appear in your wallet balance.
