Tl;dr: Today, Coinbase is announcing an easy and secure way for eligible customers to earn staking rewards on Solana (SOL).
By Thorsten Jaeckel, Senior Product Manager
At Coinbase, we’re focused on offering more ways for customers to earn crypto rewards. Today, we’re announcing the expansion of our staking offerings to include Solana (SOL) with plans to continue to scale our staking portfolio in 2022. Solana staking will be progressively rolled out to all eligible customers.
While it has been possible for individuals to stake Solana on their own, or through a delegated staking service, the process can be confusing and complicated. With today’s launch, Coinbase is offering an easy, secure way for any retail user to actively participate in the Solana network and earn rewards.
With Coinbase staking:
- Start earning automatically. Once you buy Solana, you automatically start earning rewards via staking. The current estimated annual return for Solana staking on Coinbase is ~3.85% APY.¹ You’ll receive rewards in your account every 3–4 days
- You will always maintain control. Your Solana always stays in your account; you just earn rewards while keeping your crypto safely on Coinbase. You can opt out any time you want²
- Watch your rewards grow. See your rewards accrue in your account
- Earn on as much as you want. Start earning with as little as $1
- Your peace of mind is our top priority. We take measures to mitigate the risks associated with staking and allow you to unstake anytime.
The Solana network sets the underlying return rate depending on the number of staking participants. Coinbase distributes the return to customers, less a commission.
You shouldn’t have to be an expert crypto trader to grow your crypto portfolio. Offering simple ways for our customers to earn crypto by participating in staking is an important step in building an open financial system. You can learn more about staking rewards on Coinbase at coinbase.com/staking.
Solana is a decentralized computing platform that uses SOL to pay for transactions. Solana aims to improve blockchain scalability by using a combination of proof of stake consensus and so-called proof of history. As a result, Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization, and is one of the largest proof of stake blockchains by market cap.
Solana aims to enable smart contracts to allow developers to build a wide range of decentralized finance (DeFi) apps, new crypto tokens, games, and more. When users stake their crypto, they make the underlying blockchain of that asset more secure and more efficient. And in exchange, they are rewarded with additional assets from the network, which are paid out as rewards.
¹ The rewards rate is based on the estimated protocol rate, which is subject to change. Customers will be able to see the latest applicable rates directly within their accounts.
² No lock up periods imposed by Coinbase. You may request your staked assets be traded or transferred at any time, and Coinbase will use commercially reasonable efforts to execute, subject to protocol requirements.
³ Users can opt out at any time.
Image and article originally from blog.coinbase.com. Read the original article here.