Can I avoid impermanent loss if I only stake ETH as a LP of BETH/ETH in Binance？ Is BETH's price stable？
If I don't want to hold any crypto assets except ETH，what are the best DEFI options to improve profit？
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Binance documentation describes the BETH/ETH pair.
In short, this pool is less exposed to impermanent loss because the relative volatility between BETH and ETH is much lower than for something like ETH and BUSD. In other words, the price of ETH and BETH should generally remain in a small price range, so the effects of impermanent loss are mild.
Is BETH's price stable？
If you go to the BETH/ETH market on Binance, you’ll see that BETH doesn’t trade at a 1:1 ratio with ETH – even though each BETH represents 1 staked ETH. Why is that? Well, the short answer is, they aren’t the same asset. Price discovery between BETH and ETH is completely up to the market. Remember, BETH is a tokenized version of staked ETH.
As such, BETH has different implications than ETH. The fact that it’s trading at a different price means that the market is pricing those qualities differently than ETH. BETH currently can’t be redeemed for ETH, which means there’s less flexibility to it than ETH. At the same time, it entitles the holder to staking rewards.
Q: If I don't want to hold any crypto assets except ETH，what is the best DEFI options to improve profit？
A: Probably staking ETH and/or providing liquidity to a pair of staked ether and ether (like BETH/ETH).
Hi I am a liquidity provider on Binance with the Beth/Eth pair. I am rather surprised at how high my loss is if I were to withdraw which currently stands at -131 usd which is quite a lot for a 872 usd (beth/eth equiv) share. Because of the low volatility I wasn't expecting to be losing out like this - so beware ! (The split is 0.1777 eth + 0.187 beth)