Leading crypto exchange Coinbase introduced Solana (SOL) staking, which incentivizes investors to stake their SOL within the network in exchange for a return by simply holding the coin.
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.”
and:
“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.
