Wrapped Beacon ETH
Crypto Overview
Overview
Wrapped Beacon ETH (wBETH) is a wrapped version of staked ETH in the Ethereum Beacon Chain, created by Binance. It represents staked ETH that is locked in Ethereum's Proof of Stake consensus mechanism.
Intended Utility
The primary purpose of wBETH is to provide liquidity and usability for staked ETH while it remains locked in the Ethereum 2.0 staking contract. It allows users to trade their staked ETH position and participate in DeFi activities while continuing to earn staking rewards.
Actual Utility
wBETH is actively used for its intended purpose, primarily on the Binance exchange and various DeFi protocols. The token maintains a 1:1 relationship with staked ETH plus accrued staking rewards, making it a liquid representation of staked ETH positions.
Token Distribution and Governance
wBETH is minted when users stake ETH through Binance's staking service. The token supply is directly tied to the amount of ETH staked through this mechanism, ensuring transparent and verifiable backing. There is no pre-mine or founder allocation, as tokens are only created when actual ETH is staked.
Technology and Revenue Model
The revenue model is based on legitimate staking operations on the Ethereum network. While staking generates rewards, these are not considered riba (interest) as they represent compensation for participating in network security and validation.
Crypto Impact
To assign a comfort level investing in Wrapped Beacon ETH from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Wrapped Beacon ETH.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.