Current top stake option offers an APY of 18%. Binance US, America’s affiliate of the largest cryptocurrency exchange in the world, now offers cryptocurrency staking services for its clients. This move is expected to make Binance US more competitive with other U.S-based competitors such as Cryptobase.
Binance US customers can now use stake services if they hold any seven cryptocurrencies, including Solana (SOL), Avalanche(AVAX), Cosmos [ATOM], The Graph (GRT), Livepeer/LPT, and Audius (AUDIO). More options will be available, according to the company’s Twitter account.
Proof-of-stake is a consensus mechanism that many blockchain networks use. It requires users to secure their coins in order to be granted permission to validate the next block. These users are usually awarded a reward for validating a block. This reward is typically tied to the transaction fees that were collected from that block.
Users who have more coins than they can afford will be able to validate a block and receive more rewards. Many blockchains have minimal funding requirements. This means that smaller holders will need to pool their resources together in order to receive rewards. Ethereum 2.0 requires at least 32 ETH to participate in staking (roughly $57,000 at the moment).
Since then, cryptocurrency exchanges have been a primary vehicle for users who do not have the minimum amount of funds to join staking pools and earn rewards.
Binance US’s service is similar to that offered by Coinbase and Gemini. Anyone can stake with different rates depending on which cryptocurrency they choose. The company promises 6.4% annualized returns for its native BNB token, but it also offers an 18% APY when you stake for Livepeer, a decentralized streaming network that streams live video.
However, these rates are subject to change as they are based on “estimates that were calculated based upon the average staking reward accrued over 90 days,” the company stated.
Staking on Binance US does not have a lock-up period. This means that stakers can undo their coins at any moment. However, it does charge a commission to “facilitate all technical staking requirements.”
