Key Takeaways
Cryptocurrency exchange Kraken has launched staking for Avalanche (AVAX), offering clients an annual percentage yield of up to 10 percent and lowering the technical barrier for participation in the network. The move adds a key yield-generating product for a top-15 token, intensifying competition among exchanges like Coinbase and Binance for staking services.
"Making staking simple and accessible is core to expanding participation in the Avalanche ecosystem," said John Nahas, Chief Business Officer at Ava Labs. "Kraken’s integration removes the technical barriers that have historically limited users from engaging directly with the network, enabling more AVAX holders to contribute to Avalanche’s security while earning rewards."
The exchange is offering three products at launch. A limited-time Bonded Staking option offers up to 10 percent APY, which converts to a 7 percent APY after the promotional period. Two other options, Auto Earn and Flexible Staking, each provide up to 3.5 percent APY, with rewards automatically restaked to allow balances to compound.
By managing the validator operations and infrastructure, Kraken allows users to earn rewards without the technical setup of running a node. This positions staking as a simple account feature, a crucial step for attracting broader participation from retail holders and institutions looking to put idle assets to work. The product is available globally, including in the U.S., U.K., and European Union, though it excludes residents of New York and Maine.
According to data from CoinGecko, Avalanche (AVAX) traded at $9.46 as of May 21. The new offerings from Kraken place direct competitive pressure on other platforms that provide AVAX staking, aiming to capture a larger share of the assets being secured on the Avalanche network.
Kraken noted that the projected rates are estimates and rewards are not guaranteed. Staking involves risks, including the potential for slashing penalties, hacks, and depreciation in the value of the staked assets. The exchange also specified that for its Flexible Staking option, rewards are earned on up to 50 percent of the assets selected by the user.
This article is for informational purposes only and does not constitute investment advice.
