Nasdaq-listed cryptocurrency exchange Coinbase (NASDAQ: COIN) has added Cardano (ADA) to its staking offering, allowing users to earn a return on their ADA holdings on the exchange by participating in the proofing mechanism. of network participation.
According to an announcement published by Coinbase Senior Product Manager Rupmalini Sahu, the launch is part of Coinbase’s plans to scale its staking portfolio throughout the year. In the announcement, Sahu noted that Cardano “aims to enable smart contracts to enable developers to create a wide range of decentralized finance (DeFi) applications, new crypto tokens, games, and more.”
When users stake crypto assets like ADA; he adds, they are making the underlying blockchain more secure and efficient, and in return are rewarded with assets from that network. Coinbase noted that while people can stake their ADA on their own or through a service, the “process can be confusing and complicated.”
The launch sees Coinbase making the process “easy” and “secure.”
Coinbase’s announcement adds that the current staking APY on Coinbase is around 3.75%, and that users will receive rewards every 5-7 days after an initial waiting period of 20-25 days. The underlying rate of return, it adds, is set by the Cardano network, with Coinbase taking a commission from it.
On its participation page, Coinbase details that users can earn ADA on the platform as long as they have at least $1 worth of crypto in their accounts. Other cryptocurrencies that can be staked on Coinbase include XTZ, ETH, ATOM, and ALGO.
Market watchers may have predicted Coinbase’s move, as a total of 23 staking pools staked around 1.5 billion ADA in just 12 hours earlier this week. Metadata associated with the pools linked them to Coinbase subsidiary Bison Trails, as CryptoReport reported.
Coinbase’s move as it explodes with the transaction volume seen on the Cardano network and the total value locked in its decentralized finance (DeFi) applications continues to grow.