eToro has announced the launch of a staking service for its clients, letting users earn staking rewards from Cardano (ADA) and Tron (TRX).
It has been reported that users who hold positions in either of these currencies will be eligible for staking rewards, awarded monthly, as the company said that other assets will be introduced later on as well.
Exciting news🎉https://t.co/pg3EOfG1Hn#Tron #Cardano #eToroStaking — eToro (@eToro) October 1, 2020
However, 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.
🙌eToro to provide staking rewards for Cardano $ADA and TRON $TRX 🎉 Cardano staking is a new addition to the crypto space, and eToro is delighted to be one of the first to support this. Read➡️https://t.co/OGj8VR2ns0@yoniassia @justinsuntron @Forbes https://t.co/uo7XSRQjHV — eToro (@eToro) October 1, 2020
An eToro spokesperson said that the rewards are calculated based on daily snapshots taken at 00:00 GMT, as the system calculates the corresponding reward to be distributed at the end of the month based on average daily position size.
The report said that it follows 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.
Grow Your Crypto While You HODL!🙌 eToro users can benefit just from owning cryptoassets. With eToro’s dedicated staking service, users enjoy simple, secure, and hassle-free growth on their cryptoasset investment. Read all about eToro Staking:https://t.co/ZUIP0GFxoU 👇 — eToro (@eToro) October 1, 2020
Also, the spokesperson noted that the yield is only compounded monthly, which over time would lower the staking yield significantly compared to independent staking.
Thus, 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.”
Source: Cointelegraph
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