Social asset and multi-asset broker eToro has announced it will be providing a staking-as-a-service feature to reward TRON and Cardano holders
The dedicated staking service will be available for Cardano and Tron users as the platform seeks to expand to other virtual currencies. eToro users that are also Cardano and Tron holders will get monthly staking rewards.
As the trading system for the payout is automated and fully incorporated, users won’t need to perform any action but trade assets as they normally would. The virtual currency market is infamous for its volatility, so staking will provide traders with an opportunity to make returns irrespective of whether prices fall or climb.
The staking service is, however, not without a fly in the ointment. Its most significant downside is the lack of an option to sell delegated tokens in a lockup period.
eToro outlined that there would be a “intro period” requirement that needs to be satisfied before a user qualifies to gain the rewards. A user must hold crypto for some time before becoming eligible to get the rewards.
Speaking on the announcement about the launch of the service, eToro’s CEO Yoni Assia said that: “Staking is an important development in the crypto market but it’s difficult for people to access its benefits on a secure platform, which is what we’re enabling our global community of investors to do by offering this new service.”
It is worth noting that the staking rewards will be compounded on a monthly basis, which translates to a reduced staking yield relative to independent staking. As a trade-off, the brokerage platform will give generous rewards.
A representative from the broker spoke on the matter, 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.”
eToro joins the likes Binance and Kraken that already provide staking services. Although Coinbase was said to be in the process of introducing staking for the Ada token this year, the exchange is yet to make an announcement on it.