Etoro Ada Staking question

I just read the decrypt article about Etoro staking services for Cardano.

It stated it was going to be ~7.82%. How are they offering a higher yield than us staking directly?

They’re running the pool(s). There might be other factors but I’d think that’s the main one.

2 Likes

Not your keys not your coins. So be careful when you use such services.

Cheers
Fabian

3 Likes

I don’t think asking questions makes you stupid. I thought it was a reasonable topic for discussion. Furthermore I think we all need to be kinder and more inclusive in this community if we ever expect it to transform this world.

I respect your opinions but trying to shame people is not the answer. The crypto markets and tech change rapidly and this new development is just another iteration.

If they are doing something over there to generate a sustainably higher yield that is worth investigating. At a minimum our system should investigate to protect Ada holders from scams or possibly looking at adoption of the strategy if it is sound.

6 Likes

That was the point of this discussion. I asked “How are they offering a higher yield than us staking directly?”

Etoro is fairly well known. I don’t use it but I imagine several people here do. I have always been of the mindset to buy from exchange and immediately transfer to your wallet for safety reasons.

It just made me curious about how they were generating a higher yield. You are probably right about it not being legit but that conversation within this community helps us all.

2 Likes

I don’t know about the Decrypt article since it wasn’t referenced here, but I just read the eToro page here which seems to confirm they are using the native PoS mechanism on Cardano, with delays to establish a staking position that are consistent with our well known epoch cycle.

Who knows how Decrypt got that vast return rate since eToro here shows an indicative yield of 5% from which eToro then deducts fees of 10% to 25% depending upon what “club” you are in (US users are always in the “minus 25%” club :cowboy_hat_face:).

1 Like

I apologize I should have referenced the article.

1 Like

eToro is a long established successful investment service, I’ve used them myself, definitely not a scam.

1 Like

They can offer such a high return (sorry) if they take no margin and have very high pledge.

2 Likes

If it’s an exchange or brokerage there are no rules saying that they can’t loan out your coins for margin trading lending. There are no regulatory or oversight from any authority. So above said is true, for this case in my opinion, and for DOT at 12% on Kraken.

So reduce risk and stake with an ADA wallet.

1 Like

I would assume possibly that they are offering this to gain customers but if real probably would only be temporary. I’ve seen this marketing model foin many industries where the business will take an initial loss to gain new customers which over the life of the customer they make the profit in other ways.

1 Like

I think the calculation they used to show how much the staking is makes no sense.

They say it comes out to a 5% per month payout.

Utilizing the numbers they give, math is math.

Unfortunately I don’t think there’s 100 million coins staked and them having 500,000.

It’s in the FAQ questions.

1 Like

So a loss leader that makes sense.

5% a month would be crazy!

Below is a link that shows 5% a MONTH!!!

I’m sure they meant annual yield.

1 Like