Coinbase users can now earn passive yield as high as 3.85% by holding their SOL in the Solana network through their Coinbase accounts.

In brief

  • Coinbase is now offering staking rewards for users who hold and stake Solana.
  • The feature will roll out gradually to all Coinbase users.

Cryptocurrency exchange Coinbase has enabled staking benefits for Solana (SOL), enabling holders on the platform to earn SOL rewards just for holding the coin and keeping it staked within the network.

Coinbase announced the move today, noting that it will gradually roll the feature out across its entire user base. The firm will provide an estimated 3.85% annual percentage yield (APY) on SOL that is staked in the Solana network, with rewards distributed every three to four days. By comparison, Coinbase currently offers its users 3.675% APY on Ethereum staking. Yield rates, however, are subject to change and are largely dependent on fluctuations in the total amount of tokens locked up through staking on each given network.

Solana staking has long been available through other means, such as rival exchanges like Binance and FTX, as well as self-custody wallets like Phantom. Coinbase takes a 25% cut of the staking reward provided by the Solana network and then distributes the remaining amount to participating users.

Coinbase will allow users to withdraw their staked SOL funds at any point with no lock-up period, and they must hold at least $1 worth of SOL to be eligible for staking rewards.

Staking is a process in which cryptocurrency holders can lock up their coins or tokens in a blockchain network for a period of time in exchange for yield rewards, which are akin to interest. This mechanism enables the network’s validators to operate, secure the network, and process transactions.

Validators, or node operators, can stake their own coins, while other network users can delegate their own stake to a validator in exchange for a cut of the rewards. Solana and other proof-of-stake networks, such as Polkadot (DOT) and Cardano (ADA), offer such rewards.

Coinbase currently offers staking rewards for six crypto assets: Ethereum 2.0 (ETH), Cardano, Tezos (XTZ), Polkadot, Cosmos (ATOM), and Solana. Users staking coins in Ethereum 2.0—the proof-of-stake network that Ethereum will transition to—must currently lock up their funds indefinitely in Coinbase ahead of the upcoming Merge upgrade.

Solana is currently down about 3% today at a price below $35, as of this writing. It’s similarly down about 3% over the past week, and down 22% over the past 30 days, per CoinGecko.

Want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the biggest crypto news stories + weekly roundups and more!

TECH NEWS RELATED

Apple will announce iPhone 14 via another prerecorded video message

Apple has started working on the iPhone 14’s launch event. Photo: Killian Bell/Cult of Mac Apple has not held a physical launch event in over two years due to the pandemic. While COVID-19 cases are now well under control, Apple doesn’t plan to hold an in-person iPhone 14 event ...

View more: Apple will announce iPhone 14 via another prerecorded video message

This Cube Used to Be a 1967 Shelby Mustang GT500

The Mustang was found destroyed but un-cubed in a junkyard, where its current owner had an idea.

View more: This Cube Used to Be a 1967 Shelby Mustang GT500

CFTC Targets Election Betting Platform PredictIt

The agency said the platform must shutter markets by the end of February 15 for failing to comply with rules.

View more: CFTC Targets Election Betting Platform PredictIt

Cyberpunk 2077 mod adds teleporting, bullet deflects to time dilation

A Cyberpunk 2077 mod for the RPG game from CD Projekt Red overhauls the Sandevistan time dilation system with teleportation, deflects, and additional abilities

View more: Cyberpunk 2077 mod adds teleporting, bullet deflects to time dilation

Fitbit’s Sleep Profiles are a fun way to get insights into your night

I got 'Tortoise' as my first Sleep Profile

View more: Fitbit’s Sleep Profiles are a fun way to get insights into your night

How to Disable App Diagnostics in Windows 11

The apps you download from the web or the Microsoft Store are designed to take advantage of your hardware and software information. If you revoke the permissions to access the device information, the apps won’t work. Similarly, some apps can see specific information about the other apps running on ...

View more: How to Disable App Diagnostics in Windows 11

Toyota Offers to Buy Back bZ4X EVs with Wheels That Might Fall Off

A recall was announced in June and affects 258 units of the new model. It also involves several hundred Subaru Solterra EVs, but those have not yet reached customers.

View more: Toyota Offers to Buy Back bZ4X EVs with Wheels That Might Fall Off

Top 10 Fixes for Microsoft Edge Not Connecting to the Internet

Microsoft Edge is one of the most feature-rich web browsers available out there. And it has certainly upped its game by introducing features like the Edge bar, vertical tabs, and Progressive Web Apps. However, you may fail to enjoy all those features if Microsoft Edge is having trouble connecting to ...

View more: Top 10 Fixes for Microsoft Edge Not Connecting to the Internet

Top 7 Ways to Fix Facebook Messenger Not Sending Videos

How to sell ammo in Fallout 76

It’s official — you can now use your Nintendo Switch Joy-Cons with Steam

Microsoft trials Xbox and PC Game Pass family plan

Abandoned Waste Dump location in Fallout 76

DeFiChain Community Brings Attractive Rewards For DFI ERC-20 Pairs on Uniswap

This Week on Crypto Twitter: Michael Saylor Leaves CEO Role to ‘Focus More on Bitcoin,’ Nomad and Solana Get Hacked

Today in Apple history: Original Mac Pro packs serious Intel power

Apex Legends ranked mode needs smurf protection, say players

Here’s everything we already know about iPhone 14

Lazarus hackers lure crypto-experts with Coinbase engineer job offers

What do you want to see at Samsung’s August Unpacked event?

OTHER TECH NEWS

Top Car News Car News