Binance BETH Policy Optimization: WBETH Application Scope Expanded, Staking System Fully Adjusted

Binance recently announced important policy adjustments regarding BETH and WBETH. The core logic of this change is a clear positioning—BETH will focus on staking reward distribution, while WBETH will be endowed with more diverse application scenarios. This means that users will need to flexibly switch and utilize between the two assets based on their needs.

Changes in the Functionality Positioning of BETH and WBETH

BETH holders can still enjoy ETH staking rewards, but their role in trading and lending is diminishing. In contrast, WBETH is positioned as a more versatile asset—usable for trading, serving as collateral for staking loans, and participating in DeFi projects outside the Binance platform. Users can convert BETH to ETH at any time or wrap it into WBETH to expand application scenarios. Notably, WBETH holders will also receive ETH staking rewards equivalent to BETH holders, making WBETH a more functionally complete asset.

Timeline for Spot Market Adjustments

Starting October 11, Binance has ceased trading pairs BETH/ETH, BETH/USDT, and BETH/BUSD. This adjustment directly affects users who want to enter or exit BETH via spot trading. However, users can still convert assets by redeeming BETH for ETH, just without direct trading pairs. Users holding BETH in spot wallets will continue to receive daily ETH staking rewards, so the staking function itself remains unaffected.

Shift in Derivatives and Dollar-Cost Averaging Plans

Binance’s Earn products stopped accepting BETH subscriptions from October 10, and existing subscriptions have been automatically redeemed to users’ spot wallets. Additionally, the dollar-cost averaging plans have not supported BETH subscriptions since September 8. Binance recommends users switch their DCA plans from BETH to WBETH, further reflecting the trend of prioritizing WBETH promotion.

Policy Tightening on Borrowing and Collateral Assets

New borrowing applications have not accepted BETH as collateral since September 7, but existing borrowing orders can still use BETH for collateral. This limits the new applications of BETH in the lending market but does not directly impact existing holdings.

Optimization of Liquidity Mining Structure

Binance adjusted the interest rate structure for liquidity mining starting September 8—annual interest rates for WBETH liquidity pools gradually increased, while those for BETH pools decreased. Furthermore, from October 2, users could no longer add new liquidity to ETH/BETH or BETH/USDT pools, which were fully removed after 12:00 on October 6. Users holding these pools were automatically credited with their deposited assets in their spot wallets at that time.

Gradual Token Burn Plan for BETH

Since August 31, Binance has begun gradually burning BETH tokens from specific wallet addresses. However, this measure only involves Binance system wallets starting with 0xF977 and 0xF68a. BETH tokens staked on Binance platform or in self-custody wallets are unaffected.

Overall, this policy adjustment enhances Binance’s refined management of asset functionalities. BETH retains its core staking value, while WBETH gains a broader application ecosystem. During the transition, users need to proactively adjust their strategies, converting obsolete BETH holdings into WBETH to fully leverage its richer application scenarios.