Coinbase Cloud Staking FAQ

What is staking?

Staking is the process of actively participating in transaction validation (similar to mining) on proof-of-stake (PoS) blockchains. Staking lets you earn income with your crypto by participating in the network of a particular asset. When you stake your crypto, you make the underlying blockchain of that asset more secure. In exchange, you get rewarded with more assets from the network.

Why should I stake my assets?

Token holders can stake their assets to help secure the networks and in exchange can earn participatory rewards.

What are the risks?

Staking often requires a lockup or bonded period where you can’t withdraw your crypto for a certain period of time. Another primary risk is a loss of funds due to penalties such as slashing. It’s important to mitigate these risks by choosing a reputable validator known for its high quality performance. Before staking, it is important to research the protocol requirements and rules for each project.

What are the reward rates?

The expected annual reward rates are determined by the protocols and may fluctuate over time.

Reward rates published by Coinbase Cloud are estimates based on publicly available information from third-party sources. Coinbase Cloud has not verified and does not guarantee the accuracy of this information. Reward rates on some protocols may vary based on the amount staked and/or other variables, including validator performance, so you should not rely on the accuracy of any reward rate ranges we publish, which are intended to provide an estimate. The actual rate of rewards earned may vary substantially and may change over time and Coinbase Cloud does not guarantee that you will receive any staking rewards. Staked assets may be subject to slashing penalties and risk of loss is possible, including up to the full loss of principal.