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What Is Staking?
According to Binance.US, “staking” consists of the following:
“Cryptocurrency staking allows customers to earn passive income on their existing cryptocurrency holdings. Like the name suggests, cryptocurrency staking is typically, but not always, available on assets that use the Proof-of-Stake (PoS) consensus mechanism.
Here’s how it works: When a user stakes crypto, they commit their assets toward securing the asset’s Proof-of-Stake (PoS) network. As long as the assets remain staked, they’re used to verify transactions on the network, facilitate decentralized governance, and improve the network’s resilience.
What are the rewards when it comes to staking?
Rewards earned via staking usually come in the form of additional tokens that accrue during the staking period. However, rates (typically calculated in the form of APY) may vary depending on the cryptocurrency, network conditions, and staking configurations.
APY in the Binance.US Staking context refers to the rate of return customers can expect to receive on a staked asset. Please note that the APY for cryptocurrencies will vary based on several factors, including supply and demand.
Binance.US Now Offering Staking For Seven Digital Assets
On Twitter, Binance US explained the company is now joining the ranks of the variety of crypto exchanges that offer staking services. “Binance US has officially launched staking, empowering customers to do more with their money,” the company detailed on Tuesday. “Customers can now stake while generating an APY of up to 18%, the highest rate among U.S. crypto firms,” the exchange added.
Currently, Binance US is offering staking services for seven different crypto assets, which include BNB, AUDIO, AVAX, SOL, ATOM, LPT, and GRT. Binance US shows that BNB currently offers an annual percentage yield (APY) of around 6.4% and LPT’s staking reward is 18%. When an individual on Twitter asked Binance US if they can “expect more options in the future?” the exchange replied: “Yes. More to come.”
With Binance US getting into the game of staking services, the firm joins competitors like Crypto.com, Kraken, Gemini, Coinbase, FTX, Tradestation, and other trading platforms that offer staking services for customers. In addition to centralized exchanges, crypto users can also stake coins in a non-custodial fashion by leveraging decentralized finance (defi) applications and delegating coins directly to PoS network validators.
Binance US is the American partner of the world’s largest crypto exchange by trade volume, Binance. The exchange, founded in 2017, ceased servicing Americans in 2019 and revealed the subsidiary Binance US shortly after. According to coingecko.com data, while Binance is the world’s largest by volume, Binance US is the 15th largest at the time of writing.
Parent company Binance is reportedly facing scrutiny from the U.S. Securities and Exchange Commission (SEC), according to people familiar with the matter speaking with Bloomberg. The alleged probe is tied to whether or not the crypto asset binance coin (BNB) is an unregistered security.
