Wealthsimple has launched crypto staking on its platform, claiming to be the first regulated crypto platform in Canada to do so.
Canadians can officially stake two tokens through Wealthsimple—Solana and Ethereum—to earn crypto rewards for staking their assets, which can be up to four percent in returns.
Staking is offering digital assets like crypto as collateral to validate transactions on a blockchain. In return for taking on the risk of staking, participants are rewarded with coins and tokens.
That’s right — staking is officially here. Use your crypto to help the network, and get rewarded with more crypto. Up to 4% back to be exact.— Wealthsimple (@Wealthsimple) October 26, 2022
New to staking? Ask us anything. Our Head of Crypto (@dajmeri) has the answers. 👇 pic.twitter.com/U5wM2PRSSh
Staking is when you offer some of your own crypto assets as collateral in order to be the one to validate transactions on a blockchain. Whoever validates the transactions is given a reward: more crypto. Staking rewards are a combination of network transaction fees paid by users and new issuance of the crypto.
To participate in crypto staking, the owner of an eligible crypto may need to lock their crypto assets in with the blockchain for a certain period of time. This period, if any, is dependent on the blockchain protocol.