Trading platform eToro launches staking-as-a-service feature
The eToro trading platform announced on Thursday the launch of a dedicated staking service for its clients, letting users earn staking rewards from Cardano (ADA) and Tron (TRX).
Users who hold positions in either of these currencies will be eligible for staking rewards, awarded monthly. The company said that other assets will be introduced later on as well.
The system is completely automated and does not require any action from the part of the users, who are able to trade the assets normally.
An eToro spokesperson told Cointelegraph that the rewards are calculated based on daily snapshots taken at 00:00 GMT. The system calculates the corresponding reward to be distributed at the end of the month based on an average daily position size.
It follows that users who change their positions in these currencies during the month will also see their staking rewards change. An initial “intro period” is required to become eligible for rewards. Users must hold the asset for a certain period of time before accruing any rewards. The length of the period is variable, and amounts to nine days in the case of Cardano.
The spokesperson noted that the yield is only compounded monthly, which over time would lower the staking yield significantly compared to independent staking. Nevertheless, eToro believes that its platform is highly competitive in the market, with the spokesperson saying:
“Clients staking on eToro benefit from doing so on a regulated and globally trusted platform. We also believe staking rewards on our platforms are among the most generous in the market, from a minimum of 75% of the staking yield.”
Cardano launched staking on mainnet late in July, after extended trials on an incentivized testnet. Staking-as-a-service platforms have been growing recently, with eToro competing with many exchanges and independent staking providers like Binance, Bison Trails, Coinbase and others.
This post first appeared here: https://cointelegraph.com/news/trading-platform-etoro-launches-staking-as-a-service-feature