Coinbase, one of the largest cryptocurrency exchanges, has launched staking benefits for Solana (SOL). The exchange will allow holders to earn SOL rewards by holding the coin and ensuring it remains staked within the Solana network.
Coinbase supports Solana staking
Coinbase announced that the feature will be gradually rolled out for all its users. The company also said it would offer an annual yield (APY) of around 3.85% on SOL staked within the Solana network. The earned rewards will be distributed after every three to four days.
Coinbase’s rewards on Ethereum staking currently stand at 3.675%. On the other hand, the yield rates are subject to change, and they depend on changes in the total tokens locked through staking on every network.
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Staking Solana has been available through other platforms such as the Binance and FTX exchanges. It is also available on the Phantom cryptocurrency wallet. Coinbase takes a share of 25% of the staking rewards offered by the Solana network, and the balance is divided among the users who have staked the token.
Coinbase will also offer some benefits to users who stake Solana directly on its platform. Users can withdraw the staked SOL at any time without a lock-up period. Users also need to hold SOL valued at $1 or more to be eligible for the staking rewards.
Token staking
Staking is a process popular with proof-of-stake networks such as Solana, Polkadot, and Cardano. Ethereum staking is also possible on Beacon Chain. Users receive rewards for staking tokens on these blockchains. Coins can be staked by validators, and other network users can delegate their stake to the validator to receive part of the rewards.
Staking is a process where cryptocurrency investors can lock up their tokens in a blockchain network. The tokens are left within the network for a given period, and the users receive yield rewards or interest in exchange. Staking is important within PoS networks because it allows the network validators to secure the network and process transactions.
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Source: https://insidebitcoins.com/news/coinbase-adds-support-for-solana-staking-with-high-returns