Saturday , June 19 2021

Coinbase, Binance, OKex and Huobi announced tokens to bet on Ethereum 2.0

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The recent activation of the Beacon Chain network, as the first step of what will become the new Ethereum 2.0, encourages alternative staking among exchange cryptocurrency. Exchange houses Coinbase, Binance, OKex and Huobi have announced that users who conduct ether (ETH) on their platforms will be able to exchange them for BETH tokens (ETH Beacons) in a 1: 1 ratio.

This initiative aims to support the migration of the Ethereum consensus mechanism, which is based on Proof of Work (PoW), to Proof of Stake (PoS). The proposal also seeks to increase the liquidity around the funds to be communicated.

The mechanism works as follows: the user enters the respective options exchange to block ETH destined for Ethereum 2.0. In return, the operator receives BETH as a token which is pegged at the ether market price. The token can be traded according to the wishes of the holder on behalf of the blocked token. That is, a new pair is created.

Every exchange offer yourself conditions and terms of use regarding how funds will be handled, receive incentives and marketing. Binance, for example, reports on its website that users will be able to get an estimated return percentage of between 5% and 20%, depending on the profits made by blocking funds in the chain.

“Binance pays users to build validators (nodes), and assumes the risk of penalties and foreclosures on the chain. All profits will be shared with users “, it is clear exchange.

On the BETH token, Binance shows that it grants two rights to users: the first is the possibility to exchange ether for BETH (1: 1) when phase 1 of Ethereum 2.0 goes live. And the second is to get a prize that is proportional to participation with the token.

That exchange OKex announced that before 17 December it will launch it stake with minimum participation of 0.1 ETH. Among the advantages that the exchange house will offer are: the company will cover the validator’s operational costs, all profits will be shared, OKex will cover any fines and you can also receive the prize in USDT.

“Shows will be distributed daily at 3:00 am UTC, based in proportion to the funds available to users the previous day. The annual rate of return is estimated to be between 6% and 20%, this is just an estimate, ”OKex highlighted.

Over 1 million ETH have committed to validator node conformations in Ethereum 2.0. Source:

Other exchange, Coinbase, recently published that it will also offer an alternative to traders. It will be available starting next year. The company says its intention is to support Ethereum 2.0 in two ways: through stake and crypto asset trading.

“Coinbase customers will be able to convert the ETH on their Coinbase account to ETH2 and get prizes for stake. While the ETH2 token remains locked on the Beacon Chain, Coinbase will also allow trading between ETH2, ETH, and all other supported currencies, ”the cryptocurrency exchange highlighted.

Huobi and Kraken are also targeting Ethereum 2.0

Along the same lines of support stake On Ethereum 2.0 and injecting liquidity, exchange houses Huobi and Kraken also have their proposals. Huobi reported that Incentive calculation starts on December 1 and the minimum bet is 0.1 ETH.

That exchange You will also run the risk if there is a penalty. Huobi recalled that ETH that was directed to the Beacon Chain would become BETH. The first will be blocked in smart contracts and will not be released, nor will their incentives, for at least two years or according to how the development of phase 1 progresses.

In the case of the Kraken stake It started yesterday Friday with incentives estimated at 5% to 17% per year. Prizes in this case will be awarded every week. In addition, for those users who decide to provide funds, Kraken will soon provide an exchange partner to exchange tokens for ETH until the network allows withdrawals, for those who wish, funds from the Beacon Chain.

This new network was the beginning of a long journey that Ethereum began to change its consensus algorithm. CriptoNoticias reports that the process will consist of three phases: phase 0, phase 1 and phase 2. The one that started on December 1 is phase 0 and is expected to end next year, if there are no problems.

According to the Ethereum website, more than 1 million ether have been blocked, which currently represents more than 34,000 validators.

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