Dive Into Defi: ETH 2 Staking Is Live on BSC

Binance has found yet another way to provide innovation on Binance Smart Chain (BSC) through the delivery of ETH 2.0 staking rewards.

By
KCrypto
on
January 30, 2021
Category:
Dive Into DeFi

ETH 2 Staking Is Live on BSC

Binance has found yet another way to provide innovation on Binance Smart Chain (BSC) through the delivery of ETH 2.0 staking rewards to BETH holders on the BSC. I’m incredibly excited about this, and the potential rewards grow beyond just simply holding BETH to receive a daily airdrop. 

BakerySwap Dual Reward Pools

Bakeryswap introduced liquidity mining pools for BETH / ETH, BETH / BNB, and BETH / BUSD, making the pools dual earners, earning both BAKE and BETH simultaneously. APY’s currently hover around 30% for all three pools, offering liquidity miners some exciting pairs to consider. 

My favorite pair of the three is BETH / ETH, as it allows liquidity providers to earn a high yield with little to no risk of impermanent loss to their ETH position. Meanwhile, still earning 32.02% APY at the time of writing this article.  There is no current vault out that I can find for this pair, but I’m hopeful that one will come out in the coming weeks. 

My Strategy

With the current high yields possible through BETH / ETH coupled with the low risk of impermanent loss, I find this pair to be a great way to maintain ETH exposure while boosting my earned yield. Since there is not a vault yet, I’ve developed a fairly easy strategy to compound my earnings, with the underlying goals being:

  1. Maintain my spot ETH exposure.
  2. Compound my BETH position.
  3. Build a new BAKE Token position.

Maintain Spot ETH Exposure

Like I stated earlier, the BETH / ETH pool has little risk of impermanent loss, and I am considering this to be a spot position as BETH is pegged to ETH. The price is not always 1 : 1, but it’s pretty darn close, and that is good enough for me to make this my position of choice. This is where my initial deposit has gone. 

Compound BETH

Beefy currently has a vault for BETH via Venus. The current APY for the vault is 31.36%, making this a highly attractive choice for my newly earned BETH from the BETH / ETH LP position in BakerySwap. All I need to do is claim my earned BETH and deposit it in the Beefy Vault. Let the compounding begin!

Building A New Bake Position

I haven’t been a BAKE holder until now, but I really like their innovation in this area, and I’m intrigued to see what they do next. Like my BETH strategy, I am simply claiming my BAKE earnings from the LP position and depositing them in the BAKE vault in Beefy. The vault is currently paying 31.56% APY. 

Summary

I love this new possibility because it lets me continue to compound ETH while building an entirely new secondary holding that will also compound. Like always, please do your own research, and make sure you are comfortable with and understand every investment decision you make.


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KCrypto

KCrypto is BSC News' Financial manager and one of the four founding team members. KCrypto self-proclaims himself as a yield farming "guru" who finds himself researching the latest De-Fi projects.