Coinbase added SOL staking rewards with a higher return than ETH so now users can earn passive yields as high as 3.85% by holding their SOL tokens so let’s read more today in our latest cryptocurrency news.
Coinbase added SOL staking rewards and it will offer these services for users who hold and stake Solana but the service will be rolled out gradually. Crypto exchange Coinbase enabled staking benefits for Solana and enabled holders on the platform to earn SOL rewards for holding the coin and keeping it staked on the network. Coinbase announced the move noting that it will gradually roll out the feature to its entire user base. The company will provide a 3.95% annual percentage yield on SOL whcih is staked on the network with rewards distributed every three to four days. By comparison, Coinbase offers the users 3.675% APY on ETH staking but the yield rates are subject to change and are dependent on the fluctuations in the total amount of the tokens locked up via staking on each network.
Solana staking was available via other means as well like rival exchanges such as Binance and FTX as well as self-custody wallets like Phantom. Coinbase takes a 25% cut of the staking rewards that are provided by the Solana network and then distributes the remaining amount to the participating users. Coinbase will allow the users to withdraw their staked SOL funds at any point with no lock-up period and they have to hold at least $1 worth of SOL to become eligible for staking rewards. The staking is a process where crypto holders can lock up their coins or tokens in the blockchain network for a period of time in exchange for yield rewards that are akin to interest. This mechanism helps the network’s validators to operate and secure the network.
Validators or node operators are also able to stake their coins while another network user can delegate their stake to the validator in exchange for a cut of the rewards. Solana and other networks like DOT ad ADA offer such rewards. Coinbase offers staking rewards for six assets now, ETH 2.0, Tezos, Cardano, Polkadot, Solana, and Cosmos. The users staking coins in ETH 2.0 have to lock up their funds indefinitely in Coinbase before the Merge upgrade. Solana however is down by 3% on the day at a price of $35.
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