Bitfinex, a cryptocurrency exchange, will be receiving $189 million worth of the Polygon funds (MATIC) dedicated to increasing the staking rewards for Bitfinex users. One source explains that Bitfinex will be receiving 90 million MATIC for this staking program.
What is Polygon? Polygon is a second layer scaling solution for the Ethereum blockchain designed to speed up transactions while reducing costs.
Trading for MATIC, around the time of writing, was $2.07, which was down 1.1% over the previous 24 hours. In the last seven days, the token’s price decreased 13%.
Crypto staking is a procedure used to validate block transactions and improve a network. In the case of Polygon, users submit MATIC to validators and receive rewards and interest payments as a result.
Within this new MATIC program with Bitfinex, users could receive up to 41% in annualized staking rewards for a limited time only. Bitfinex warned users that “this hypothetical is only an illustration and not a prediction or guarantee”.
According to stakingrewards.com, the Binance staking rewards for MATIC are 12%, which is significantly lower than Bitfinex’s offering rate.
