Last year, popular cryptocurrency exchange Binance launched a new blockchain parallel to its already existing chain. The new blockchain was one that would house and also facilitate the building of decentralized applications (dApps).
The newly launched chain is known as Binance Smart Chain (BSC). Following its launch, the platform has received commendations from top players in the blockchain and cryptocurrency space. It has also entered into strategic partnerships with top industry players like Injective Protocol, Gravity Network, etc. Binance Smart Chain (BSC) has taken its innovation a notch higher and has listed support for Ethereum’s ETH 2.0 staking. Now, BETH holders can now earn ETH 2.0 staking rewards on BSC.
How To Earn ETH 2.0 Staking Rewards on BSC?
First, What Is ETH 2.0?
ETH 2.0 is the much-anticipated upgrade to the Ethereum network. The upgrade has been touted as the solution to all ETH scalability issues. Slated to go live in three stages, the upgrade will including an important shift from a PoW to a PoS consensus mechanism.
To earn ETH 2.0 staking rewards, users need to first stake Ethereum (ETH). This process is quite easy and comes with maximum return. However, staked tokens can not be redeemed any time soon. Although no specific timeline has been published, it may take over two years before tokens can be redeemed. Binance will tokenize staked ETH as BETH, and it will be staked 1:1 to ETH tokens. While staked tokens can not yet be redeemed, stakers can, however, swap their BETH to ETH at any time on BSC.
Depending on the amount of BETH staked, users will receive on-chain rewards in their Spot account from time to time.
BakerySwap Reward Pools
One of the most important pools to use is the BakerySwap Reward Pools. Interestingly, the pools offer dual rewards to ETH 2.0 stakers. Simply put, stakers will earn rewards both in BAKE and BETH on the platform. Bakeryswap liquidity mining pools include BETH/ETH, BETH/BNB, and BETH/BUSD. The pools currently offer APY as high as 30% for all its pools, providing interested liquidity miners with compelling options to choose from.
BETH/ETH seems to hold a great deal of attraction for liquidity providers. According to reports, this is mainly because of its hedge against impermanent loss as well as high yields, reaching as high as 32% APY. These features will help stakers maintain their ETH exposure while still earning staking rewards. It is, however, important to note that the BETH/ETH liquidity mining pool does not have a vault yet.
Since there’s no vault for the BETH/ETH liquidity pools yet, KCrypto highlights a three-step technique to help compound ETH 2.0 staking rewards on Binance Smart Chain (BSC).
The three easy steps include:
- First, maintain spot ETH exposure.
- Then, compound BETH position.
- Lastly is to build a new BAKE Token position.
At the time of publication, ETH was up by 1.1%. The token was also trading at $1,834.87, with a market cap of $210,478,623,084 and a 24-hour trading volume of $34,424,344,147.
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Find out more about the much-anticipated ETH 2.0 upgrade on the Altcoin Buzz YouTube channel.