#SoftStaking Core Mechanism: Interest on Holding Without Lock-up Soft Staking allows users to earn **staking rewards automatically** while holding tokens in the exchange wallet, without needing to actively manage or lock assets. For example: - KuCoin dynamically allocates users' held tokens like ATOM and EOS to mainnet staking while retaining some liquidity for users to trade at any time, with daily distribution of rewards and no fees. - Compared to traditional staking (such as Cosmos which requires a 21-day unbonding period), Soft Staking achieves “zero freezing time.” Although the annualized yield may be slightly lower (for example, ATOM yield is about 1%-2% lower), the capital utilization rate is significantly improved.
Differentiated Competition Among Exchanges Each platform has differentiated three types of models based on user needs: 1. **Instant Reward Type** (Binance, KuCoin): Holding tokens generates interest, suitable for high-frequency traders. 2. **Fixed High Yield Type** (Huobi, OKEx): The longer the lock-up, the higher the yield, attracting long-term holders. 3. **Flexible Derivative Type** (BitMax): Staking generates “-S” tokens, which can be used for margin hedging risks while balancing yield and leverage strategies.
Market Driving Force: Solving “Opportunity Cost” Anxiety The rise of Soft Staking directly addresses user pain points: **Earnings are needed in bear markets, and there’s fear of missing out in bull markets**. During the Ethereum 2.0 staking wave in 2021, ordinary users hesitated due to the 32 ETH threshold and penalties, while exchanges' Soft Staking attracted a large amount of small capital with low barriers and no technical difficulties.
Future Challenges and Evolution Despite its outstanding convenience, Soft Staking is still constrained by the risks of centralized custody. Emerging solutions like **Liquid Staking Derivatives (LSD)** are attempting to integrate DeFi advantages: for instance, Lido tokenizes staking assets through stETH, allowing users to participate in on-chain lending and trading simultaneously. Meanwhile, Qtum's Offline Staking ensures ownership of funds through smart contracts, promoting a balance between decentralization and security.
> The essence of Soft Staking is the “Staking as a Service” provided by exchanges, which lowers the threshold for crypto earnings, but does not change the fundamental source of earnings stemming from underlying chain inflation and transaction fees. In the future, deep integration with DeFi may become a key path to overcoming custody disputes.
#美国加密立法 The Great U.S. Crypto Legislation Drama: Trump’s 'Favorite Son' Bill Under Attack, $10 Trillion Market Hanging by a Thread! In May 2025, a shocking 48 hours of U.S. crypto legislation unfolds — 🔥 Nuclear-Level Turning Point 1️⃣ GENIUS Bill Sudden Death: Bipartisan 48:49 Vote Battle, Democrats Surprise Attack with 'Ban President from Trading Crypto' Clause 2️⃣ Trump Coin Caught in Scandal: $2 Billion Stablecoin Deal in UAE Exposed, Accused of 'Modern Copyright Money Trading' 3️⃣ SEC Secretly Shuffles: Crypto Mom Peirce Takes Over New Working Group, Binance Lawsuit Mysteriously Paused for 60 Days ⚠️ Life-and-Death Line Tonight - If the bill is not passed before June, $12 billion in institutional funds will withdraw (Goldman Sachs Data) - USDT/USDC Continue to 'Run Naked', $230 Billion Stablecoins Could Explode at Any Moment - Hong Kong and Singapore Seize Opportunity to Grab Crypto Pricing Power This legislative war is no longer a technical battle, but the ultimate showdown between dollar hegemony and political dirty money! : Trump’s Crypto Empire Faces 'Capitol Hill Sniper' : U.S. Stablecoin Legislative Deadlock: Who is Controlling the $230 Billion 'Time Bomb'?