Binance Launches Solana (SOL) Staking; Holders Earn Up to 43% APY Paid Daily
The largest crypto exchange in the world, Binance, has launched Solana staking. Users of the exchange now have an opportunity to earn up to 43.79% per year for staking SOL tokens.
The high-speed blockchain, Solana, which states it can handle about 65,000 transactions in one second, is designed to work under a proof-of-stake design model. The network is kept running by validators who earn SOL tokens for their work.
The SOL staking will be offered on a first-come, first-served basis where the entire stakes will be locked for a time to be determined by the holder, which will range from 15 to 90 days.
The launch includes a “high-yield, safe earn” on an annual basis so long as the staked amount is only 20 SOL equivalent of $325. This translates to about $142 total earnings if the SOL tokens are locked up for one year.
Binance also announced that those staking 10,000 SOL for only 30 days would earn 14.49%, while those staking 5,000 SOL for two months (60 days) will earn 16.7%.
Although proof-of-stakes are getting popular, they come with various risks. These platforms are created using a slashing process, which means that the platform is prone to stopping or slashing the transactions initiated by a malicious validator. This means that one can lose funds permanently. However, if Binance can ensure that all its validators are online and doing nothing malicious, there is nothing to worry about.