Bitfinex Launches Staking Service with up to 10% Interest

Bitfinex, a major crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, has launched a staking program to reward its clients for holding digital currencies on the platform.

Announced on Tuesday, traders on the platform can earn up to 10 percent of annual interest on proof-of-stake tokens.

Initially, the crypto exchange has added three digital currencies - Cosmos (Atom), V.Systems (VSYS), and EOS - for Staking Staking Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Staking is defined as the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. In particular, staking represents a bid to secure a volume of crypto to receive rewards. In most case however, this process relies on users participating in blockchain-related activities via a personal crypto wallet.The concept of staking is also closely tied to the Proof-of-Stake (PoS). PoS is a type of consensus algorithm in which a blockchain network aims to achieve Read this Term and will also add Tezos in the offering on May 11.

The platform also has plans to add Algorand (ALGO) and Tron (TRX) for staking services in the future.

The annual interest between 8 to 10 percent can only be earned for V.Systems tokens, while for Atom and EOS, the annual reward rates are 1.5 to 3 percent and 0 to 3 percent, respectively. Tezos holders can earn between 3 to 5 percent in interest annually.

As mentioned in the exchange's website, staking rewards will be distributed every week.

"Every single week we will pay out the rewards we collect to our users based on a calculation of time and amount of digital tokens held by the user during the week," Bitfinex stated.

Proof-of-keys?

The exchange also detailed that the digital currencies will be stored in its "in-house custody solution."

"When Bitfinex stakes a digital token, it is delegated by the exchange, meaning that the tokens remain in the platform's control and are secured in the same manner as other tokens," the announcement noted.

Staking has gained a lot of hype lately as many major platforms are offering such services, enabling their customers to earn interest on holdings.

Coinbase and Kraken only support staking for Tezos, while Binance last year added staking support for as many as 15 digital currencies. Apart from exchanges, BitGo, a crypto custody platform, is also offering staking services.