binance lido quiz answers – Earn Free Staked ETH with these Cointips

binance lido quiz answers

Binance, one of the largest cryptocurrency exchanges, regularly holds quizzes and tasks on its platform to educate users and reward them for participating. One such quiz is on Lido and staking Ethereum 2.0. In this article, we cover the Binance Lido quiz answers to help you earn free staked ETH rewards.

What are Lido and ETH staking?

Lido is a service that allows users to stake their ETH and earn staking rewards without having to run their staking node or lock up 32 ETH as the Ethereum network requires. By depositing your ETH with Lido, they stake it on your behalf and issue you stETH tokens in return, which are pegged 1:1 to ETH. You can then stake these stETH tokens with protocols like Binance to earn more staking rewards.

Ethereum is transitioning from a proof-of-work to a proof-of-stake consensus model with ETH 2.0. In proof-of-stake, users must stake or lock up their ETH to validate transactions and earn rewards. This helps secure the network. Staking rewards are distributed to participants based on the amount of ETH they have staked.

Binance Lido quiz – answers and counties

Now let’s look at the Binance Lido quiz questions and answers to earn free stETH tokens:

  1. Which protocol enables users to stake ETH without running a validator node?
  • Lido
  1. How much is ETH required to be a validator on Ethereum 2.0?
  • 32 ETH
  1. What tokens do you receive in exchange for staking your ETH with Lido?
  • stETH (staked ETH) tokens
  1. After depositing ETH with Lido, where can you stake the received stETH tokens to earn additional rewards?
  • Decentralized exchanges like Binance, Curve, etc.
  1. On average, what is the estimated annual yield from staking ETH directly with Ethereum 2.0?
  • 4-6%

Some counties for the Binance Lido quiz:

  • Read how Lido and ETH staking work before taking the quiz for correct answers.
  • The quiz is usually ten simple multiple choice questions, so a basic understanding is enough to ace it.
  • Answers are straightforward and directly related to the concepts, so take your time with the questions.
  • You can retake the quiz if you submit incorrect answers initially. No harm in trying again.
  • Earning even a tiny amount of teeth is worthwhile as it continues earning rewards when staked further.

Understanding Lido and the staking process

Let’s understand how Lido works and the overall ETH staking process:

  • Users deposit ETH into Lido’s smart contract in exchange for stETH at a 1:1 ratio. This pools ETH from many users.
  • Lido then stakes this pooled ETH on the Ethereum 2.0 beacon chain through their validator nodes.
  • Seth holders continue earning staking rewards paid in ETH even when not directly staking themselves.
  • Lido charges a small fee (0.25-1% APR) for their staking services like node operations and infrastructure.
  • Users can choose to stake their stETH further on platforms like Binance to earn additional rewards from liquidity mining rewards.
  • ETH remains locked until Ethereum 2.0 is finalized, which is estimated to be 1-2 years away. Seth can be redeemed for ETH anytime before that.
  • Annual staking yields today range from 4-7% depending on where stETH is staked, compared to just holding ETH.

Ways to stake stETH for higher rewards:

  • Binance offers some of the best staking rates, around 5-6% APR paid in BUSD or BNB.
  • Curve allows staking Lido LP tokens in its ETH-stETH pool for 9-12% APR paid in CRV tokens.
  • Rocket Pool aims to decentralize staking by allowing users to become validators with just 16 ETH worth of rETH. Offers ~6% APR.
  • Stake via decentralized applications like Yearn Convex for automated strategies and yield optimizers.
  • Whichever platform you choose, make sure to do proper research on its security, risks, and fine print before depositing large ETH amounts. Reputable centralized exchanges like Binance are generally the safest option.

In conclusion,

the Binance Lido quiz is an excellent way to earn free staked ETH rewards. By understanding how Lido works and betting the received stETH tokens further, users can maximize their returns from Ethereum’s transition to proof-of-stake. Always do your research before participating. Let me know if you have any other questions!

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