Users automatically receive rewards on some of their crypto positions.
The eToro trading platform announced on Thursday the launch of a dedicated staking service for its customers, enabling users to earn Cardano (ADA) and Tron (TRX) staking rewards.
Users holding positions in either of these currencies will be eligible for staking rewards, awarded on a monthly basis. The company said that other assets will also be introduced at a later date.
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The system is fully automated and does not require any action by users, who can trade assets normally.
An eToro spokesperson told Cointelegraph that rewards are one Bitcoin a Day calculated based on daily snapshots taken at 00:00 GMT. The system calculates the corresponding reward to be distributed at the end of the month based on an average daily position size.
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It follows that users who change their positions in these currencies during the month will also see their staking rewards change. An initial „introductory period“ is required to be eligible for rewards. Users must hold the asset for a certain period of time before accumulating rewards. The length of the period is variable and amounts to nine days in the case of Cardano.
The spokesperson pointed out that the return is only capitalised on a monthly basis, which over time would significantly reduce the return of staking compared to independent staking. However, eToro believes that its platform is highly competitive in the market, and the spokesman said:
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„Customers who stak out at eToro benefit from doing so on a globally trusted and regulated platform. We also believe that the rewards of staking on our platforms are among the most generous in the market, starting at a minimum 75% return on participation.
Cardano launched the participation in the main network at the end of July, after extensive testing in an incentivised test network. Staking platforms as a service have been growing recently, with eToro competing with many exchanges and independent staking providers such as Binance, Bison Trails, Coinbase and others.