Cryptocurrency exchange Binance has officially launched its own staking platform, which allows clients to tap into rewards offered by certain types of cryptocurrencies running on proof-of-stake networks.
Staking, the company explained, enables users to earn dividends or interest on their digital assets for validating transactions and also allows them to vote on changes in the blockchain. Users are rewarded for simply depositing and holding coins on Binance as they normally would.
“With Staking, Binance users will be able to grow their funds by receiving monthly rewards & distributions simply by depositing and holding funds on Binance. Users will earn staking rewards without needing to set up any nodes, worry about minimum staking amounts, time lengths, or any other technical requirements,” the powerful crypto venue explains.
At the moment, the Binance platform allows for the staking of several cryptocurrencies including: NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VEN/VTHO), Stellar (XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), & Stratis (STRAT).
The Malta-based exchange also said it would update its staking calculation methodology effective October 1. Instead of taking a single daily snapshot at a specific time, Binance will hold hourly snapshots for clients balances, adding to the snapshots for assets held within trading balances.
Pure Markets' CEO Talks Business Model, 2020 OutlookGo to article >>
Binance goes against similar offerings
The scheme is flexible enough to calculate a final snapshot for each day, while ensures “the fairest distribution of rewards to users,” Binance said.
Other crypto exchanges already allow users to stake their crypto holdings, including Coinbase which offers the service for institutional clients since April.
While its staking service is still in its infancy, Binance already allows its users to earn interest on their cryptocurrencies through providing loans to those interested in borrowing digital assets.
Initially, users can lend BNB, ETC, and USDT, but the exchange plans to scale up and will add more coins in the future, though it didn’t reveal which ones or specific timing at this point.
Dubbed ‘Binance Lending,’ yields are generated through pilot lending products on these three tokens using fixed-investment plans available on the basis of a 14-day maturity term.