[Proposal] Add WBETH as collateral to mint R on Ethereum

Dear Raft community,

This is Omaka from Binance Earn WBETH team. I am writing this proposal to introduce WBETH as a new collateral of R on Ethereum network. The introduction of WBETH offers a valuable prospect for enhancing diversification, expanding the spectrum of collateral assets, and consequently alleviating particular risks correlated with dependence on a restricted assortment of collateral.

WBETH Overview

WBETH is a reward-bearing liquid staking token, where 1 WBETH represents 1 ETH and the total staking rewards accrued by the ETH on ETH Staking.

WBETH will allow users to obtain immediate liquidity and participate in DeFi projects, while ensuring their eligibility to receive the corresponding ETH Staking rewards accrued.

On-chain users can stake their ETH to obtain WBETH by interacting with the WBETH smart contract. Binance users can wrap their BETH tokens to WBETH, and unwrap their WBETH to BETH tokens on the Binance ETH Staking page at zero fees.

In 4 months since its launch, WBETH has become the top 200 token by TVL, with robust liquidity on Binance platform and $40mil TVL in DeFi projects. Binance is the top 3 staking service provider, with 1.2+ mil ETH staked which represents 5% of all Ethereum staked. Taking Binance’s strong presence in ETH staking, the upside of WBETH will be huge.

Important Links

Website: Ethereum 2.0 Staking | Stake Ether & Get BETH | Binance

FAQ: What Is WBETH? | Binance Support

Guide to stake WBETH (via smart contract) Guid to stake ETH --> WBETH via smart contract - Google Docs


Dune Dashboard and Markets: https://dune.com/billwang/wbeth

Audit: https://github.com/peckshield/publications/blob/master/audit_reports/PeckShield-Audit-Report-wBETH-v1.0.pdf

Risk mitigation

Market Risk

Our team understands the importance of liquidity depth of LST as collateral, so we are working with more DEX and DeFi projects to ensure low slippage trading and use cases are available on chain. Given the TVL in Binance ETH staking, there is a huge potential in the traction and liquidity depth around WBETH.

Technology Risk

Smart Contract - Binance endeavors in safety of users’ assets. All the contracts have been audited internally with the robust auditing process by our security team. Source code of the WBETH contract is open-sourced. An additional external audit was also conducted to ensure the security of the smart contracts.

Oracle - Binance Earn is working with oracle providers to ensure reliable price feed of WBETH. Binance Oracle pricefeed are ready on BNB Smart Chain. More oracles will be onboarded for price feeds on Ethereum.


Despite the risk mitigation we have had / are working on, we are proposing the following conservative parameters for using WBETH as collateral to mint R, alongside a comparison with the existing parameters for stETH and rETH:

Minimum Collateralization Requirement 120% 120% 130%
Borrowing spread 0.50% 1.00% 1.00%
Redemption fee 1.5% 2% 2%
Collateral Cap uncapped 20,000 rETH 750 WBETH
Collateral cap per Position uncapped 1,000 rETH 35 WBETH

We would be happy to adjust the above parameters based on feedback from the community and core Raft team and would be happy to answer any questions on WBETH. Adding WBETH as a market for R collateral will be mutually beneficial for both Raft and WBETH, as it will increase the utility for WBETH, while also increasing the Raft TVL and rollout of R.


Hi @Omaka

Welcome to the Raft community, and thank you for sharing your proposal. It’s great to see Binance playing an increasingly important role and contributing to the Ethereum DeFi ecosystem.

I believe having diversified eligible collateral types adds to Raft’s long-term health and sustainability.

For all integrations, Raft requires two Oracle price feeds to support our primary and secondary oracle mechanism. We currently are able to integrate with Chainlink, Tellor and Redstone.

I think adding WBETH will strengthen Raft’s position as a market leader in the LSDFi space and provide another great use case for WBETH holders.

I am excited to see what the community thinks about this proposal.


having binance in our repertoire would be a great start for onboarding bigger players.
my only concern is the lack of liquidity in DEXes.
however, i also have a feeling that I might be missing some pools.

my concerns regarding 750 collateral cap are also mitigated by the 35 per position cap.
however, rising collateralization to something around 150 might be a better start, given the lower liquidity.

source : Raft Collaterals - Dune

Yeah I agree here with Richard, as long as the oracle situation is able to be handled it makes tons of sense to continue to onboard different types of collaterals and be able to market towards a whole new community of users. Also, Binance can deposit into Raft and mint $R :smiley:

1 Like

Happy to support and keep moving forward with the discussion about launching the WBETH price feed with RedStone Oracles :slight_smile:

Definitely WBETH is a key LST in the space and is in the position to keep growing.

yes . Im ok with this proposal.
This project is awesome

Generally not a fan of centralized LST’s. Would especially exercise caution around WBETH given all the recent news/rumours around Binance. Might all just be FUD, but doesn’t hurt to wait this one out a bit untill the dust settles.

Prefer ETHx and sfrxETH to be added first.