- Bitfinex will partner with Polygon for its enhanced staking program.
- The cryptocurrency exchange will receive 90 million MATIC to support staking rewards.
In a new announcement, crypto exchange giant Bitfinex has announced a partnership with Polygon. This latest partnership would see Bitfinex receive 90 million MATIC tokens (worth about $166 million) to bolster Polygon’s newly launched staking program on Bitfinex.
Polygon is a secondary scaling solution designed to stimulate faster, cheaper transactions on the Ethereum network. At the time of writing, MATIC was changing hands around $1.84, down 15% over the past 24 hours. The token’s price has slid 35.60% from its all-time high of $2.92 in December 2021.
The crypto company revealed in a blog post, “We’re pleased to announce that Bitfinex will receive 90 million MATIC from Polygon to sponsor enhanced staking rewards for Bitfinex users. This means we anticipate users could receive up to 41% in annualized staking rewards by participating in Bitfinex’s staking program on MATIC (erc20).”
The tokens would be distributed to Bitfinex users who participate in the enhanced staking rewards program, allowing them to earn up to 41% annual interest. Even more, the program would be available for a limited period. According to Bitfinex, the interest was calculated based on estimated customer deposits in the staking program, meaning actual rewards would be different.
The announcement further read, “The percentage was calculated based on a hypothetical situation of 36 million MATIC in customer deposits participating in Bitfinex’s staking program. Actual rewards will vary based on factors including the total amount of MATIC deposited by customers participating in Bitfinex’s staking program and the performance of Bitfinex’s third-party staking provider. This hypothetical is only an illustration and not a prediction or guarantee. Bitfinex does not intend to update this illustration at any time.”
Crypto staking is the process of locking up cryptocurrency holdings to support a blockchain network and verify transactions. Staking is available on networks utilizing the proof-of-stake consensus model to validate transactions, and validators can earn rewards.
Through Bitfinex’s enhanced staking program, customers will delegate MATIC to validators who run nodes on the Polygon network. In return, they’ll receive staking rewards in form of annual interest payments.