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“Soft Staking” Feature Added For Dai Stablecoin On Crypto.com

Crypto.com stands as a cryptocurrency payment platform based in Hong Kong, and has recently added support for the Dai stablecoin (DAI). In particular, DAI will join the Soft Staking program of the payment platform. This addition will allow Crypto.com’s users to earn interest within their respective DAI holdings, should they opt to deposit and hold tokens on the platform itself.

Proof-of-Stake Over Proof-of-Work

DAI stands as a decentralized cryptocurrency that leverages various crypto holdings to keep its price valuation at exactly 1 USD in value. Dai stands at a unique position, however, as it’s a stablecoin that isn’t backed by fiat currencies. Instead, DAI is backed by crypto-based collaterals, viewed publicly within the Ethereum blockchain.

The process of staking is a proposed alternative to crypto mining. Instead of using computer hardware to solve complex mathematical problems, a user earns interest or dividends by depositing their crypto holdings back into the blockchain. Users are now capable of doing so via Crypto.com, as well.

Advent Of Stablecoins And Their Threat To Traditional Financial Systems

A New “Soft” Staking Offered

“Soft Staking” is a new feature, a sort-of step further from the original staking concept. It offers flexible terms regarding it, where users are still capable of accessing their staked coins. This is due to the service itself not mandating a commitment period, paying out an interest by the day, instead. With this, some risk associated with traditional staking is eliminated, as you don’t need to lock up your coins to facilitate it. Instead, the funds are stored in pending orders. The CRO is also used to subscribe to other events within the Syndicate, as well.

Crypto.com stated that the return rate for these stakes could be up to 4% per annum. This stands as a projection based on the amount of CRO that was staked by users these past six months. The staked coins’ prices tend to fluctuate. Thus Crypto.com made it clear that proceeds gained from staking are itself subject to various market dynamics, as well.

Global Proof-of-Stake Service Expansion

Crypto.com isn’t the only platform offering staking features, however. The heavyweight crypto exchanges across the world have started to move towards offering staking-as-a-service. It was earlier last year when Binance and Coinbase made their own bid. Quite recently, CoinDCX made its own bid for it, as well, being the first major Indian crypto exchange to offer crypto staking to its users. What should be noted is that CoinDCX will aggregate all the staking of its users in order to try and get a greater reward through doing so.

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      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.