Lido Finance announced last Friday, August 13, through its Twitter account, that bETH is available on Anchor Protocol, so that users can now lend and borrow their BETH: a wrapped version of stETH on Terra.
“With the launch of bETH on Anchor, ETH bettors can now collateralize their stETH (in the form of bETH) on the Terra blockchain, in effect allowing bettors on one blockchain to participate in another chain of blocks efficiently”, he said through an article posted on his website.
About Anchor Protocol
It is a protocol on the Terra blockchain that allows depositing and redeeming Terra stablecoins, minting bAsset tokens, borrowing Terra stablecoins with bAssets as collateral, and participating in the governance of Anchor.
Also read: Vesper Finance shared a summary of the platform
According to the company, as a protocol that capitalizes wagering rewards in a blockchain universe through bAssets (linked assets), Anchor’s next move to bring bETH as a collateral option on Anchor doesn’t just grant holders from stETH increased opportunities through access to Anchor’s guaranteed loans and liquidity mining rewards, increasing Anchor TVL through stETH’s cash flow, but also significantly diversifying Anchor’s asset pool, reinforcing Anchor’s sustainability long-term.
What is BETH?
It is a token that represents stETH tokens on the Terra blockchain. Unlike stETH which rebalances daily, the balance of bETH remains constant, like a wrapper (wstETH, for example). BOTH participation rewards can be claimed in the form of UST, Terra’s native stablecoin.
How to wrap BETH
The company explained that to get BETH, you will first need to have ETH or stETH that you can wrap. The wrapping process accepts either one (Ether, you understand?). Visit Anchor.lido.fi to convert your ETH / stETH to bETH.
1. Connect your Ethereum wallet by selecting “Connect wallet” at the top right.
2. Enter the desired amount of stETH / ETH that you would like to set to BETH.
3. Enter the Terra wallet address where you would like to receive your BETH.
4. Select “Unlock token for conversion”.
5. Approve the first transaction.
6. Then select “Submit” and confirm the final transaction.
How to use BETH in Anchor
According to Lido Finance, once BETH is deposited as collateral for Anchor, all rewards accrued by Anchor Protocol are distributed to aUST holders. “ANC tokens are rewarded as an incentive for borrowers. As it currently stands, users are being rewarded for borrowing!”, he added.
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