Can someone explain in layman terms how yield is produced when staking on coinbase?
Are they gambling with my Solana?
Is my solana at risk?
Where does the extra Solana come from that they are paying me every few days?
Can someone explain in layman terms how yield is produced when staking on coinbase?
Are they gambling with my Solana?
Is my solana at risk?
Where does the extra Solana come from that they are paying me every few days?
It’s reduced compared to staking directly with a validator
How do you say this?
Personally Im staking my SOL through my ledger. Really nothing can go wrong. The point of failure is ledger live basically. But even if the validator goes offline you can redelegate or unbound. Very unlikely ledger live would vanish before I need my sol.
But with coinbase. Your point of failure is coinbase going bankrupt and cannot pay out after the 21 day unstaking period.
Then there are wallets and point of failure is wallet. Same as ledger in a way. I would rather either than coinbase. Probably you would be fine with coinbase since don’t see them bankrupt soon. But if I were staking millions would not give coinbase. Not sure but they likely stake it for you and forward the rewards while taking a percentage.