Crypto exchange Binance launched a new liquid staking token, Wrapped Beacon ETH (WBETH), on its rebranded Ethereum staking product.
According to its blog post, Binance's WBETH token will allow users to invest in DeFi projects while receiving staking rewards from the Ethereum (ETH) network.
Meanwhile, the exchange will stop processing withdrawals for its Beacon ETH (BETH), another liquid staking token launched by Binance long before the Ethereum Merge.
Explaining the difference between the coins, Binance noted that each WBETH token will represent one BETH coin and the staking rewards accrued by BETH after April 27. Unlike BETH, WBETH tokens will provide access to more DeFi platforms and platforms outside of Binance.
Starting April 27, the exchange will allow clients to swap their Beacon ETH assets for Wrapped Beacon ETH at zero transaction fees.
Although the two tokens will initially have a 1:1 conversion ratio, Binance expects the value of WBETH to increase in correspondence with the daily rewards from its Ethereum staking service. Binance added,
"Each WBETH token will accrue ETH Staking rewards from the Ethereum Network daily, in accordance with the daily APR on the ETH Staking service."
Moreover, Binance clarified that clients need not convert their BETH assets to WBETH to participate in staking. This is because users will continue to receive daily staking rewards by holding BETH in their Spot Wallets.