Staking Module: A Vital Addition to Your Crypto Exchange Software in 2023

Table of Contents:

• Introduction: What is Staking in Crypto?
• Understanding Staking Module
• Market Overview: Staking on Crypto Exchanges
• Things to Consider While Integrating Staking Module
• Top Crypto Exchange Software Platforms For Crypto Staking 2023
• How is Crypto Staking An Essential Feature In Web3 Crypto Exchange Development?
• Final Thoughts

Introduction: What is Staking in Crypto?

The world of digital finance is gradually maturing and mimicking the mainstream financial paradigm while maintaining its supremacy. In conventional finance, people park their fiat in interest-bearing bank accounts or certificates of fixed deposit to receive rewards on idle money. Staking is a similar activity wherein crypto holders lock a portion of their crypto funds in a wallet or platform, such as crypto exchange software, to earn rewards, mostly in the form of interest or more crypto.

The difference is that banks use the (locked) money for lending or investing elsewhere to earn higher interest rates. Whereas the holdings stay where they are in the case of crypto, making the blockchain network more secure and robust and enhancing the efficacy of its operations. Another remarkable difference is the ROI (return on investment), which is significantly higher in the case of crypto staking.

Before we understand why the staking module is an essential integration for Web3 crypto exchange development in 2023, let’s study what it is.

Understanding Staking Module

A staking module is a software component that allows digital asset marketplaces to offer staking services to their customers. The module empowers users to stake their coins or tokens on multiple blockchain networks without leaving the trading/staking platform or transferring funds to another wallet. 

Does this mean that crypto exchange software solutions can enable crypto users to stake every crypto asset? Certainly not. Blockchain networks that leverage the PoS (Proof of Stake) mechanism as their consensus mechanism allow users to stake cryptocurrencies built on them. PoS mechanisms depend on validators who stake their funds to participate in the consensus process. The validators are selected based on the size of the stakes, and they’re rewarded for their contributions.

For developing a staking module, a crypto exchange development company needs to put together an intuitive interface, an automatic reward distribution system, a platform’s wallet system, different blockchain protocols, and multiple other APIs.

Market Overview: Staking on Crypto Exchanges

While cryptocurrency marketplaces mainly focus on facilitating the buying and selling of digital currency, many have introduced reward programs to enable customers to earn interest on their digital asset holdings. 

As more and more crypto exchange software solutions have integrated staking modules, it has become a popular trend in the crypto space. It picked up steam with the launch of Ethereum 2.0, a significant shift that migrated Ethereum’s consensus process from PoW (Proof of Work) to PoS. Other than Ethereum, many other blockchain networks have embraced PoS and its various variants, including DPoS, NPoS, LPoS, etc.

According to Statista, the total value locked in stakes of the top 20 cryptocurrencies amounted to more than $70 billion. Given its popularity among users and existing crypto exchanges, it has emerged as a valuable feature of crypto exchanges. Therefore, entrepreneurs in 2023 looking to begin their Web3 Crypto Exchange Development must include a dedicated staking module to allow traders and investors to participate in staking through an exchange platform.

Things to Consider While Integrating Staking Module

There are various things that a customer considers while comparing several staking platforms, such as:

• Annual Payout Yield or Rates at Which Customers Receive Rewards
• Frequency of reward payouts
• Funds Lock-Up Terms
• Customer Service
• Quality of User Interface of Mobile App/Website
• Supported Digital Currencies
• Security and Transparency

Considering the above-mentioned factors while executing the Web3 crypto exchange development can make an exchange platform stand out as a staking service provider. 

Top Crypto Exchange Software Platforms For Crypto Staking 2023

1. Coinbase:

• Offers simple and secure staking options
• Operates in more than 100 countries

2. Binance

• Both flexible and locked staking options are available
• Offers staking services for more than 40 cryptocurrencies

3. eToro

• Regulated by the SEC, ASIC, CySEC, FCA, etc.
• No lock-in period and flexible withdrawals

4. Gemini

• Allows users to stake more than 40 cryptos
• Easy-to-navigate staking module

5. KuCoin

• Over 50+ digital assets available for staking
• Lucrative reward systems 

6. Coinbase

• Facilitates crypto staking for the most popular cryptos
• Robust security features

7. Kraken

• Allows users to unstake coins or tokens at any time
• Known for Bi-weekly reward payouts.

How is Crypto Staking An Essential Feature In Web3 Crypto Exchange Development?

Both the exchange platform and its users can benefit from a staking module. Let’s discuss some business benefits of integrating a staking module into your exchange platform:

• As long as people are satisfied with rewards, they stick to the crypto exchange software platform. It increases customer loyalty and, therefore, leads to increased user retention and customer base.
• It requires no action except locking it up for once and involves minimal risk. Henceforth, staking is a popular risk-free passive investment option that can act as a magnet for attracting new users. 
• Staking activity supports the overall blockchain ecosystem. Therefore, including crypto staking in your Web3 crypto exchange development can enhance your brand reputation and credibility.  
• Increased user engagement and revenue generation as businesses can earn more fees and commissions by rigging out their exchange with a strong staking module. Staking also increases liquidity on your trading platform. 
• Integrating a staking module into your crypto exchange software keeps you ahead of the platforms that do not yet offer staking services. It increases brand differentiation and becomes a competitive advantage.

Final Thoughts

Staking is an environment-friendly activity that benefits both businesses and crypto exchange users. By partnering with a professional crypto exchange development company, you can generate more revenue while still promoting a greener consensus process. Staking, unlike mining, has minimal effects on the environment, making businesses promoting the activity environmentally responsible. 

Antier has been a global leader in offering ready-to-deploy flagship software solutions and on-demand Web3 crypto exchange development services. Their team of highly skilled and motivated blockchain engineers, software developers, UI/UX designers, consultants, and experts is equipped with the expertise and tools you require to ace the crypto space. 

Talk to their subject matter experts to integrate a robust staking module into your existing exchange platform or build a fully-fledged crypto exchange software with a staking module.