Binance.US introduces a 6% APY Ethereum Staking Service ahead of The Merge

On September 7, Binance.US announced the launch of an Ethereum Staking service, with the aim to provide consumers with a 6% initial annual percentage yield (APY).

After recently updating the users about the potential cases after The Merge event, this newly-launched feature will enable customers to stake ETH using a minimum of 0.001 ETH (about $1.62), according to a blog post on Binance.US. In comparison to the 32 ETH required to become an Ethereum validator, this sum is far more reasonable for small investors. The announcement reads:

“While there is a 32 ETH requirement for staking directly through the Ethereum network, users can stake on Binance.US with a competitively low minimum of just 0.001 ETH.”

It is important to remember that rewards obtained through staking will be distributed once Ethereum completes its Merge event and switches from Proof of Work (PoW) to Proof of Stake (PoS).

At the moment, Binance is providing higher APYs than its competitors. As a point of comparison, Nexo offers 4% APY, Blockfi 4% APY, Lido Finance 3.5% APY, and Coinbase 3.25% APY.

This has given the exchange the opportunity to broaden the number of tokens it offers, including the newly introduced ADA, DOT, BNB, and MATIC tokens.

The team at Binance.US is enthusiastic to introduce this service, according to CEO Brian Shroder. He added that the company also hopes to develop fresh, comprehensive staking offerings that will offer “greater value for customers.”

“ETH plays a critical role in the broader Web3 ecosystem, and as the Ethereum network continues to transition towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry.”

Binance.US covers all the factors

The Ethereum update is anticipated to happen between September 15 and 16, as TheCoinRise reported. However, the Merge might result in a new fork, which would limit the capacity of Binance.US to respond and protect its users.

Users will be able to deposit and withdraw their ETH without any problems if there is no new fork. But let’s say Ethereum separates into new chains with new tokens. In that event, Binance will continue to support the “ETH” token for Ethereum’s PoS version while crediting the tokens that were in users’ wallets before the Merge.