Coinbase wrote in a blog post earlier today:
“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.”
“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.”
Coinbase will offer an approximate 3.85% annual percentage yield (APY) on SOL tokens, and the proceeds will be distributed to the holders every 3-4 days. In comparison, the rewards for staked ETH are currently a little lower at 3.65% on the platform.
However, the APY rates are subject to change depending on the total staked amount on each network.
The company believes that direct staking of SOL or via a delegated staking service can be “confusing and complicated”, and their service – to be gradually rolled out for all the users – will make the process much more straightforward, enabling participating users to stake as low as $1 worth of SOL.
Coinbase plans to collect rewards directly from the Solana network, take a 25% commission cut, and distribute the remaining. Users can withdraw their staked SOL at any point as there won’t be any lock-up period.
Solana staking is already available on other platforms, including competing exchanges such as Binance, FTX, and self-custody wallets like Phantom. With this move, Coinbase hopes to reach out to new retail investors by mitigating the risks associated with staking.