This new feature allows Robinhood Crypto customers to stake their Solana (SOL) holdings directly through the app.
It enables them to earn rewards while maintaining the flexibility to unstake at any time. Let’s explore more about this important news from Robinhood.
Robinhood Introduces Crypto Staking
At launch, the staking product offers an approximate annual percentage yield (APY) of 5%. Crypto staking is a process where users lock up their cryptocurrency to support the operations of a blockchain network. In return, they receive staking rewards. The specifics of staking vary by network and cryptocurrency, each with unique requirements and bonding periods. When a user initiates the staking process on Robinhood, they will not be able to sell the staked crypto. Once the assets are bonded, they start earning rewards for the duration of the staking period.
Users have the option to unstake their crypto anytime after the bonding period ends. They can also cancel a pending stake request before the bonding process starts. Note that a minimum amount may be required for unstaking, and rewards stop accumulating on unstaked amounts. Rewards begin to accrue once the bonding period is complete.
🚨 Announcing a few new updates to Robinhood Crypto 🚨
First, Solana ($SOL) #staking is now live for eligible European customers 🎉 This allows customers to earn staking rewards on their $SOL holdings with the flexibility to unstake at any time.https://t.co/yioQfCHT2n
/1 pic.twitter.com/J6cH0PMDC6— Robinhood Crypto EU (@RobinhoodCrypto) May 15, 2024
More About Robinhood’s Staking Feature
Generally, reward rates are dynamic and can change depending on current conditions. All advertised reward rates are estimated APYs and are subject to change. The actual reward equals the estimated protocol rate minus the staking partner and Robinhood Crypto fees, paid in cryptocurrency.
Robinhood has also made it convenient for users to manage their staking activities. Through the staking hub, users can access their staking history, reward details, and payout dates for each coin. The app’s interface provides a clear and detailed breakdown of earnings and fees.
We’ve also rolled out a suite of Learn & Earn modules about $AVAX, $BTC and $USDC.
These are tailor-made to help you understand different cryptocurrencies while earning rewards along the way.
/3 pic.twitter.com/Pf2wY6fFwn— Robinhood Crypto EU (@RobinhoodCrypto) May 15, 2024
For instance, when staking SOL with Robinhood Crypto, the estimated protocol rate is 6%. After deducting both the Robinhood Crypto fee and the staking partner fee, the net APY for SOL staking stands at 4.185%. The Robinhood Crypto fee is 25%, which is factored into this net return.
Disclaimer
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