Hi. I'm looking for more information about bEth token. People are talking about this token on forums that this could be bigger than Ethereum itself. What actually is bEth? and what is it for ?
BEth is an idea to launch derivative market for Etherum on a Beacon chain. This would provide liquidity for investors who do not want to get out of position and at the same time want to support the new 2.0 network. Unfortunately, at the moment, the Eth deposit agreement for Protocol 2.0 is one-way at least to the first phase of Eth 2.0 called Serenity, and it may take up to several years. Hence, there is so little interest in transferring ethereum to a new protocol. BEth would function as IOU (I own you) tokens. For example, someone wants to stack their ethers on eth 2.0 using the X exchange, then they will get the Beth token, a representative token of the 2.0 ETH network. At the moment, simply transferring ETH to the Eth 2.0 chain is zero return, but with BEth the trader will still have access to their funds and will still be able to transfer or sell their BEthers when their price is high. Stock exchanges even plan to go a step further and program the BEth token in the way that interest is charged in real time. Interest for BEth Hodlers would be pro-rated on approximately 20% of the annual salary at the new Eth network. Of course, this requires trust in an exchange where you need to deposit your Eth through the tools they will provide, and the exchange will grant an entry to the BEth database and pay out rewards based on that. This is a good solution for users who have less Ethereum than the required 32 and would like to support the new network by sending their ETH to the X exchange and converting it to BEth. The stock exchange deposits the right amount to the 2.0 network or runs its own node and assigns you BEth and pays rewards accordingly (of course deducting the fee). The user could not withdraw any ETH and would have to trust the X exchange until Phase 2 which could be a matter of years. This would be a great solution and gives a peace of mind for investors who have thousands of ETH or more and don’t want to play with it. For now, this is an idea that aims to encourage people to transfer their Ethereum to the second chain, because as we know, the interest is very low. The demand and value of this token would depend on the market interests.
Beth is a token that represents the ethereum that users have migrated to the new eth2.0 blockchain. As you know, all ethers transferred to the second chain become useless and irretrievably placed on the 2.0 network. Beth enables users to continue trading and accessing funds. Cryptocurrency exchanges that will list the Beth token want holders to also receive staking rewards when eth staking starts.