VanEck’sSolanaETNinEuropeoffersautomatedstakingrewardswithcoldstorageprotectionforSOLinvestors.
ThestakingprogramprovidessecuritybykeepingstakedSOLincoldstorage,whileinvestorsbenefitfromdailystakingrewards.
InarecentCNFupdate,VanEckhasenhanceditsSolanaETNinEuropebyincorporatinganautomatedstakingfeature,simplifyinghowinvestorsearnandreceivestakingrewards.AccordingtoMatthewSigel,theheadofDigitalAssetsResearchatVanEck,thismovealignswithSolana’sgrowingdecentralizationanditsstatusasacommodity.
InvestorsareautomaticallyenrolledinthestakingprogramuponpurchasingtheETN,withrewardscalculateddailyafterdeductinga25%stakingfee.AsdetailedinthemarketingcommunicationintroducingSOLstaking,VanEckhighlightedthat:
TheSolananetworkusesaDelegated-Proof-of-Stakeconsensusmechanism(DPoS)asopposedtoEthereum’sProof-of-Stake(PoS).Everyvalidatoronthenetworkhasanopportunitytoparticipateinconsensusbycastingvotesforwhichblockstheybelieveshouldbeaddedtotheblockchain,therebyconfirminganyvalidtransactionscontainedinthoseblocks.
SigelnotedthattheETN’snon-custodialapproachleveragesthephysicalSOLheldbytheETNforstaking.ThecustodiandelegatestheSOLtoavalidatormanagedbyastakingprovider,ensuringthatcontroloverthestakedtokensremainswiththecustodianincoldstorage,thusminimizingthird-partyrisks.Thissetupprovidesaddedsecurityforinvestorswhilestillallowingthemtobenefitfromstakingactivities.
LiquidityandRiskManagementforSolanaETN
Addressingquestionsaboutliquidity,SigelexplainedVanEck’sdynamicriskmodel,whichensurestheycanmeetdailyredemptionsefficiently.Solana’sshorterstakingepochsmakeliquiditymanagementsimplercomparedtotheirEthereumETP.
Thesystemalsoallowsforthedailyaccrualandreinvestmentofstakingrewards,whicharereflectedintheETN’sNetAssetValue(NAV)bytheendofeachday.Thistransparentprocessprovidesinvestorswithclearandstablereturns.
InadditiontoitsEuropeanofferings,VanEckisexpandingitspresenceinthecryptomarket.ThefirmhasrecentlyappliedtolaunchthefirstSolanaETFintheU.S.,furtherunderscoringitscommitmenttointegratingdigitalassetsintoitsportfolio.
ReiteratingthelatestupdateintheCNFpost,VanEckstatedthatSolanacouldreach50%ofEthereum’smarketcapbydominatingDeFiandpayments.AccordingtoCoinMarketCap,Solana(SOL)iscurrentlytradingat$164.32,withadecreaseof2.90%inthepastdayanda4.54%increaseoverthepastweek.
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