Hong Kong-based cryptocurrency payment platform Crypto.com has added support for the stablecoin Dai (DAI) to join its Soft Staking program. The addition enables users to earn dividends or interest on their DAI holdings just for depositing and holding the token on the platform.
DAI is a decentralized cryptocurrency that leverages its crypto holdings to keep price valuation stabilized at around 1 US dollar. But unlike other stablecoins, whose value is backed directly by fiat currencies, DAI is backed by crypto collaterals that can be viewed publicly on the Ethereum blockchain.
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Staking enables users to earn dividends or interest on their digital assets for validating transactions and also allows them to vote on changes in the blockchain. Users are rewarded for simply depositing and holding coins on Crypto.com as they normally would.
The so-called soft staking process goes a step further by offering flexible terms where users are able to access their staked coins as the service doesn’t require a commitment period and the interest is paid every day. This helps eliminate some of the risk involved with traditional staking by removing the need for your coins to be locked up. Instead, funds that are stored in pending orders and CRO used to subscribe to other events on the Syndicate are also included.
Major Crypto Exchanges Made a Push into This Space
The return rate stated by Crypto.com, up to 4% per annum, is a projection based on the amount of CRO staked by users for 6 months. And since the price of the staked coins fluctuates, the stalking proceeds are subject to different dynamics as dictated by the market.
Meanwhile, Crypto.com isn’t the only platform doing staking as other large crypto exchanges also move toward staking-as-a-service offering. Coinbase and Binance made a push of their own into this space earlier last year.
Founded in 2016, Crypto.com launched its initial coin offering (ICO) in May 2017. This occurred after a year working on its offering that includes a range of products aimed at promoting the adoption of cryptocurrencies on a wider scale. The payments and card provider, formerly known as Monaco, also offers customers the option to fund their crypto wallets via EURO bank transfers from accounts in the Single Euro Payments Area (SEPA).
Crypto.com, which provides crypto-related Visa cards, wallet and portfolio building services, also obtained a policy of $100 million through a global insurance marketplace that covers users’ digital assets held in their accounts.