By Alicia Maher
Bitfinex, a cryptocurrency exchange, announced that it would acquire $166M in MATIC tokens from Polygon to sponsor more significant staking incentives for customers.
Bitfinex Obtain Funding From Polygon (MATIC) to Cover MATIC Staking Rewards
Bitfinex, the world’s largest cryptocurrency exchange, has announced its partnership with Polygon. Bitfinex will get 90M MATIC tokens (worth roughly $166M) as part of this newest cooperation to support Polygon’s recently introduced staking scheme on Bitfinex.
Bitfinex would acquire 90M MATIC for the upcoming staking scheme, as per a recent post by Bitfinex. Polygon’s a “layer 2” scalability solution for the ETH blockchain to improve transactional speed and efficiency.
Polygon’s a secondary scalability option for the Ethereum network that aims to make transactions quicker and more affordable. MATIC was trading at about $1.84, down by 15 percent in the previous 24-hours. From its ATH of $2.92 in the previous month, the price of MATIC has dropped 35.60 percent.
They’re thrilled to make the announcement that Bitfinex would be receiving 90M MATIC from Polygon to support greater staking incentives for the members of Bitfinex, the cryptocurrency exchange said in a blog post. Meaning This means that by engaging in a staking program by Bitfinex on MATIC (erc20), customers might earn about 41 percent in yearly staking incentives.
Bitfinex customers participating in the expanded staking rewards program will receive the tokens, which will let them earn about 41 percent yearly interest. In addition, the program will only be accessible for a short time. The interest was computed based on expected user deposits in the staking program, as per Bitfinex, thus real incentives may vary.
The proportion was estimated with reliance on the hypothetical case of 36M MATIC in user deposits engaging in Bitfinex’s staking program, the release continued. The overall sum of MATIC placed by users engaging in Bitfinex’s staking program, as well as the competence of the third-party staking supplier for Bitfinex, would determine the real payouts. This scenario is merely an example, not a forecast or assurance. Bitfinex has no plans on updating this graphic at any point in the future.
Staking Cryptocurrencies
Cryptocurrency staking involves locking up bitcoin holdings for supporting and validating transactions on a blockchain network. Validators could receive rewards by staking on ecosystems that use the PoS consensus paradigm to verify transactions.
Staking cryptocurrency is verifying payments on a blockchain and securing the network. In the instance of Polygon, consumers outsource MATIC to validators that operate nodes in exchange for interest-like compensation.
Customers can outsource MATIC to validators running nodes on the Polygon ecosystem via Bitfinex’s improved staking scheme. In exchange, they’d get staking incentives in the form of yearly interest payments.