WazirX is the second Indian crypto exchange to launch in-app staking.
The Binance-backed Indian cryptocurrency exchange WazirX has launched a new in-app staking feature on Sept. 1 that will allow its users to stake cryptocurrencies to earn interests.
Staking is the process of holding cryptocurrencies in a wallet to support the operations of a proof-of-stake blockchain network in return for rewards in the form of new tokens.
Kicking off the launch with support for just TRON (TRX), WazirX is gearing up to add one new token for staking every week, according to an announcement. Tezos (XTZ) and Harmony (ONE) are two other tokens scheduled for launch in the next two weeks.
Users with a minimum of 500 TRX will be able to stake their tokens on WazirX. The staked tokens, however, will not be locked and users will be able to trade them on the exchange. The exchange will automatically adjust the staked amount and the corresponding rewards depending on the total balance after the trade execution.
According to the announcement, users may expect an annual return between 4% and 9%.
Shetty said that while the Supreme Court’s March ruling had paved the way for greater crypto adoption in India, the lack of trading expertise and crypto knowledge are still huge barriers to surmount.
“We have introduced staking to involve crypto enthusiasts into crypto and grow the ecosystem,” he said, adding:
“Moreover, the lowering of bank interest rates has sparked demand for alternative ways to earn interest on holdings. Staking allows you to earn interest without any counter-party risk. Hence, bringing in staking was a natural step.”
According to the CEO, the most difficult aspect to introducing staking was understanding the fast-evolving DeFi ecosystem and the required security measures to ensure users’ safety. He added that being a part of Binance helped them better understand the security risks of DeFi.
WazirX launched its first DeFi product in August and Shetty said that they are now working on other DeFi projects that will get the exchange “completely involved in the DeFi ecosystem.”