Coinbase's ETH2 staking has begun
In a tweet from April 16, 2021, Coinbase has announced they've started to allow customers off the wait list to earn up to 6% APR on their ETH.
Coinbase has started to roll out Ethereum 2.0 staking rewards for its customers. This is happening roughly 2 months after first announcing the wait list for this feature.
Staking ETH locks your cryptocurrency (i.e. you cannot trade it) in exchange for up to 6% percent APY. The gain comes from transaction fees from blocks validated by Coinbase's validators in the Ethereum 2.0 Proof-of-stake network. The interest rate is tied to demand, as more people stake, the lower the rewards are.
In order to stake on your own, you need at least 32 ETH, however, joining a staking pool (like Coinbase's), users pool together their ETH, no matter how much they have, and share the rewards. This mitigates the need for a large sum of money to engage in staking, as well as mitigating the risk of loss in case of a slashing (i.e. losing some of the staked ETH due to acting in a way that does not conform with the network's rules)
Initially, customers will not be able to sell or send the portion of Ethereum that they choose to stake. However, Coinbase expects to offer a way to trade any staked Ethereum in the coming months.
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