Kraken has officially launched the staking service for smart contract Cardano platform's native cryptocurrency ADA. In return, users can expect rewards in the range between 4 to 6% per annum, beating the interest paid out by major banks across the world by a considerable margin.
Staking for Cardano’s ADA cryptocurrency is now supported on the U.S.-based cryptocurrency exchange Kraken, according to an official blog post. Per the announcement, users can tap Kraken’s market-leading staking service to stake ADA.
Users were able to access the staking service inside the Kraken Staking Wallet after the option went live at 21:00 UTC on May 4.
Kraken offers one of the highest returns among other crypto exchanges, ensuring users are receiving payouts every week. Kraken enables users to start accruing and earning rewards on ADA instantly without any waiting or lockup period.
At the same time, Kraken offers its users to exit from their staking position almost instantly by transferring their holdings from the Staking Wallet directly to their Spot Wallet, a feature not usually seen among other cryptocurrency exchanges.
The payouts are delivered on a regular weekly basis and are currently available for the exchange’s Starter, Intermediate, and Pro account versions.
Cardano is a blockchain-based platform with a proof-of-stake (PoS) mechanism that offers developers the ability to operate smart contracts and build decentralized applications.
Staking in Cardano’s ADA helps the blockchain network in allowing users to vote on changes to how the network is managed and executed. Owners of ADA are thereby incentivized to help running the network while voting on changes to its software rules.
Kraken initially listed the ADA cryptocurrency back in 2018. With the addition of ADA, Kraken now supports staking in seven assets, including Ethereum, Polkadot, and Flow, with more coming soon.