What is BETH and how does it work? - Understanding Ethereum staking

What is BETH and how does Ethereum staking work?

BETH is a tokenized version of ETH, used for staking in the Ethereum network. Each BETH is equivalent to 1 ETH in staking. With this token, users can easily participate in ETH 2.0 Beacon Chain staking and earn rewards.

How does BETH work?

With the launch of the Beacon Chain in December 2020, the upgrade of the Ethereum network aimed at improving its scalability began. At the initial stage, it is already possible to stake ETH in стейкинге in the new network. BETH allows participation in ETH staking while maintaining asset liquidity.

Advantages of Using BETH

BETH significantly simplifies the staking participation process, freeing users from the need to meet the technical requirements of deploying their own node. An important advantage is the preservation of liquidity, allowing funds to be withdrawn at any time. Additionally, BETH opens up opportunities for earning additional income through its use in various DeFi applications.

Use Cases for BETH

BETH offers a variety of usage opportunities. Simple storage already provides rewards for staking. Users can also participate in Launchpool for access to liquidity pools of new tokens or provide liquidity in Liquid Swap pools. BETH can be used as collateral in lending protocols, provide liquidity on decentralized exchanges, or be utilized in yield aggregators for automatic searching of the most profitable investment opportunities.

Pricing of BETH

The price of BETH is not always equal to ETH, although each BETH represents 1 ETH in staking. This is explained by the fact that BETH and ETH are different assets with different properties. The market values BETH differently due to its lower flexibility compared to ETH, but considering the right to receive rewards from staking.

Prospects of BETH

BETH plays an important role in the Ethereum ecosystem, allowing users to participate in the network's development and earn passive income. As ETH 2.0 evolves and the popularity of staking increases, the significance of BETH will grow. This opens up new opportunities for investors and developers in the Ethereum ecosystem.