With Staking and Lending at Bitvavo, you can earn rewards on a supported range of digital assets with reward rates as high as 15%. Staking and Lending at Bitvavo allows you to monetize your digital assets that would otherwise lie idle in your wallet.
By staking your crypto assets, you participate in the proof-of-stake (PoS) consensus mechanism of a blockchain network, all while you receive staking rewards in return. Learn more about Staking here.
Bitvavo Lending unlocks your digital asset's full earning potential. By enabling Lending, you consent to loan all digital assets, as selected by Bitvavo at its own discretion, to Bitvavo Custody BV. Bitvavo Custody lends your assets to trusted partners, who then perform various activities to earn rewards and share these earnings with Bitvavo Custody. Bitvavo Custody distributes parts of these earnings back to you, in return for borrowing your digital assets.
Staking and Lending at Bitvavo - Frequently Asked Questions
How can I participate in Staking and Lending at Bitvavo?
Lending can only be enabled for all assets at once, and Staking can be enabled individually per asset. Make sure you download the newest version of our app from your app store.
How are rewards being calculated?
Rewards are calculated based on two factors:
- The current rewards rate is shown in your account. For some assets, this reward rate might change over time (for example Tezos, where the reward is influenced by the total amount staked across the entire network).
- The number of digital assets you hold in your Bitvavo-hosted wallet per day. To determine this amount we look at the lowest amount you have had in your wallet on that specific day. Assets held in open orders are included in this calculation.
When you sell or withdraw the staked asset to an external wallet, you don't accrue any rewards on this asset from that moment on.
When do I get my rewards credited to my account balance?
The Staking and Lending rewards are accrued daily and paid out weekly on Monday in the form of digital assets, before 23:59.
How much can I receive in Staking rewards?
Reward rates for Staking assets can be as high as 15% over the value of the digital asset and are calculated daily. You can find the current reward rates per asset in your Bitvavo account.
ARK (ARK) ~ 1,07%
Axie Infinity (AXS) ~ 15,00%
Cosmos (ATOM) ~ 8,00%
Cardano (ADA) ~ 2,05%
Casper (CSPR) ~ 7,00%
Celestia (TIA) ~10,00%
Ethereum (ETH) ~ 3,20%
ICON (ICX) ~ 3,00%
Kusama (KSM) ~ 7,00%
Livepeer (LPT) ~ 10,00%
LTO Network (LTO) ~ 5,00%
NEAR Protocol (NEAR) ~ 5,00%
NEO (NEO) ~ 0,52%
Ontology (ONT) ~ 0,51%
Phala Network (PHA) ~10,00%
Solana (SOL): ~ 5,50%
Sui (SUI) ~ 2,00%
Terra 2.0 (LUNA2) ~ 2,00%
Terra Classic (LUNA) ~ 2,00%
Tezos (XTZ) ~ 2,50%
The Graph (GRT) ~ 3,00%
Waves (WAVES) ~ 2,00%
How much can I receive in Lending rewards?
Reward rates for reward-eligible Lending assets can be as high as 2% over the value of the digital asset and are calculated daily. You can find the current reward rates per asset in your Bitvavo account.
Am I allowed to trade and withdraw my Staking and Lending assets as usual?
While your digital assets are lent via Staking and /or Lending at Bitvavo, you will be able to trade and withdraw the Staking and Lending digital assets you own as you would for any other digital asset on your Bitvavo account.
Can the Lending reward rates change?
The Lending reward rates may change at Bitvavo’s discretion, as the rates are subject to changes caused by market supply and demand. It is possible that the Lending reward rates increase or decrease after you’ve already agreed to lend your digital assets.
Can the Staking reward rates change?
The Staking reward rates may change at Bitvavo’s discretion, as the rates are subject to changes caused by market conditions. It is possible that the Staking reward rates increase or decrease after you’ve already agreed to Stake your digital assets.
For example; When you put assets into a liquidity pool, the accrued rewards are shared among all the participants. If more people join and add their assets, each person gets fewer rewards which results in a lower reward rate.
Are there any tax implications for Staking rewards?
The tax implications and reporting requirements associated with Staking vary depending on the jurisdiction in which you reside. Staking rewards may be subject to income tax, capital gains tax, or other tax obligations. It is advisable to consult with a tax professional or refer to tax authorities to understand the specific tax implications and reporting obligations related to Staking in your jurisdiction.
Are there any tax implications for Lending rewards?
The rewards earned from lending your crypto assets may be subject to taxation. The specific tax implications vary depending on your jurisdiction and the applicable tax laws. Interest income is typically considered taxable income, and you may be required to report and pay taxes on the interest earned. It is recommended to consult with a tax professional or refer to tax authorities to understand the tax obligations associated with Lending activities in your jurisdiction.
Are there any restrictions on participation in Lending and Staking at Bitvavo?
There may be certain limitations or restrictions on participating in Bitvavo Lending. This may include restrictions based on your place of residence. For example, our lending services are not available to customers residing in Germany.
There are risks to the Lending service, as included in the Risk Disclosure Statement.
Who are the third parties Bitvavo Lending works with?
We work with multiple lending partners, including lending platforms, market makers and trading firms. We regularly review our relationship with our lending partners to provide the best reward rates while keeping risks as low as possible.
All Bitvavo lending counterparties undergo an elaborate screening process to determine creditworthiness and set appropriate limits aimed at mitigating risk. The creditworthiness and reliability of borrowers are typically assessed through a combination of factors, which may include: credit history, financial statements, collateral evaluation, KYC/AML, reviewing reputation and references, IT risk assessment, and operational risk assessment.
We may at any time choose to engage new lending partners or disengage the partners we work with. This may result in a sudden change of the Lending rates, or a temporary halt of the Lending service.
What are the risks involved with the Staking service?
Staking involves certain risks. To learn more about the risks involved in staking, review the Bitvavo Risk Disclosure Statement.
How are Staking validators or nodes selected?
Staking involves the process of participating in the validation and consensus of a blockchain network holding cryptocurrency assets. Bitvavo stakes on behalf of its customers. As a customer, you entrust Bitvavo to handle the staking process, including the selection of appropriate validators or nodes within the supported blockchain networks. Bitvavo employs a rigorous due diligence process to assess the credibility and reliability of validators or nodes it engages with for staking purposes. This due diligence process may involve evaluating factors such as the reputation of the validators or nodes, their performance history, security measures in place, and their compliance with network protocols
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