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The latest activation of the Beacon Chain network, as the first step in what will be the new Ethereum 2.0, encourages the introduction of options among the yields of cryptocurrencies. The exchanges Coinbase, Binance, OKEx and Huobi have announced that the users who commit ethers (ETH) on their platforms will be able to exchange them for BETH (Beacon ETH) tokens in the ratio 1: 1.
The initiatives aim to support the migration of Ethereum’s Proof of Work (PoW), to Proof of Stake (PoS), based on Proof of Work (PoW). The proposal also aims to improve the liquidity of the funds that will be made.
The mechanism works as follows: the user enters the option for each exchange to block ETH intended for Ethereum 2.0. In return, the operator receives BETH as a symbol linked to the ethereal market price. Said token can be traded according to the holder’s wishes for the blocked token. That is, new couples are created.
Each exchange offers its own terms and conditions of use for how the funds will be handled, receive incentives and marketing. For example, Binance reported on its website that users will be able to earn an estimated annual percentage return between 5% and 20%, depending on the profit from blocking funds in the chain.
Binance pays users to build validators (nodes) and takes the risk of penalties and confiscation in the chain. All winnings will be distributed to users “, explained exchange.
On the BETH token, Binance pointed out that it gives users two rights: the first is the ability to exchange ethers for BETH (1: 1) when Phase 1 of Ethereum 2.0 goes live. And the second is to get rewards that are proportional to participation with the token.
The exchange OKEx announced that it will launch its before 17 December satsar with a minimum participation of 0.1 ETH. Among the benefits that the stock exchange will offer are: the company will cover the validation operating costs, all profits will be distributed, OKEx will incur penalties and you can also receive rewards in USDT.
“The show will be distributed every day at 03:00 UTC, based on the funds raised by the user the previous day. The annual return is estimated to be between 6% and 20%, this is just an estimate, ”noted OKEx.
Other exchange, Coinbase, recently announced that it will also offer alternatives to traders. These will be available from next year. The company said it intends to support Ethereum 2.0 in two ways: through satsar and trading in cryptocurrencies.
“Coinbase customers will be able to convert ETH in their Coinbase accounts to ETH2 and earn rewards for satsar. While ETH2 tokens remain locked in the Beacon Chain, Coinbase will also allow trading between ETH2, ETH and any other supported currencies, ”the cryptocurrency exchange noted.
Huobi and Kraken also target Ethereum 2.0
Along the same lines to support satsar In Ethereum 2.0 and injection of liquidity, Huobi and Kraken exchange houses also have their proposals. Huobi reported it Incentive calculations started on December 1 and that the minimum bet is 0.1 ETH.
The exchange You will also bear the risks of penalties. Huobi reminded that ETH directed at Beacon Chain will be BETH. The former will be locked in the smart contract and will not be released, nor their incentives, for at least two years or according to how the development of phase 1 progresses.
As for the Kraken satsar It started yesterday Friday with incentives estimated at 5% to 17% per year. The rewards in this case will be weekly. In addition, Kraken will soon provide an exchange pair for those users who decide to spend money to exchange tokens for ETH until the network allows withdrawals, for those who wish, funds from Beacon Chain.
The new network is the beginning of a long journey as Ethereum began to change its consensus algorithm. CriptoNoticias reported that the process will consist of three phases: phase 0, phase 1 and phase 2. The one that started on December 1 was phase 0 and is expected to end next year, if there are no problems.
According to Ethereum’s website, more than 1 million ethers have already been blocked, which currently represents more than 34,000 validators.