Luno has expanded its staking platform with the addition of Cosmos (ATOM), enabling users to earn a promotional 18% APY until June 16, 2025, after which the rate will adjust to 11% APY. This marks the highest staking return currently offered by a licensed exchange in South Africa, surpassing existing rates for Ethereum, Solana, Cardano, Polkadot, and Near.

The decision to add Cosmos comes amid growing interest in staking as a passive income strategy, with investors seeking safer, yield-generating alternatives to traditional crypto lending and trading. Cosmos, often referred to as the “Internet of Blockchains,” enables interoperability between multiple blockchain networks, making it an ideal candidate for staking rewards.

“Cosmos offers a unique staking mechanism through its Tendermint consensus algorithm,” said Christo de Wit, Luno’s South African Country Manager. “With a strong technical foundation and substantial network activity, ATOM staking presents a compelling opportunity for users to earn high yields while supporting network security.”

Expanding Staking Options to Meet User Demand

The addition of Cosmos elevates Luno’s staking portfolio to six major cryptocurrencies, reflecting the exchange’s strategy to diversify staking options for users of all experience levels.
Since the platform’s inception, over 150,000 staking wallets have been created, with users staking a cumulative R1.5 billion worth of assets. While Ethereum remains the most popular asset, Cosmos’ 18% APY promotional offer could shift investor interest significantly.

Luno’s staking model is designed for maximum flexibility, allowing users to stake and unstake their assets anytime without penalties or lock-up periods.
Rewards are distributed daily, with users able to compound their earnings by keeping their rewards within their staking wallets. This compounding effect can lead to accelerated returns, particularly for high-yield assets like Cosmos.

Crypto Market Volatility and Risk Management

Despite the attractive APYs, Luno’s management warns users of the potential risks associated with staking.
“While staking can generate substantial returns, market volatility remains a significant factor. Users must be aware that crypto prices can fluctuate, impacting the value of staked assets,” said de Wit.

To mitigate these risks, Luno provides educational resources, real-time market data, and risk assessment tools. The platform also emphasizes the importance of diversification, recommending that users stake multiple assets to spread risk.

Luno Expands Solana Staking in Malaysia

Earlier this month, Luno launched Solana staking in Malaysia, marking the third staking product offered in the region after Ethereum and Cardano. The Solana staking feature allows users to earn SOL rewards every two days, providing a passive income stream for long-term holders.

Scarlett Chai, Luno’s country manager in Malaysia, stated that the Solana staking launch is part of Luno’s broader initiative to expand crypto investment options across emerging markets.
“With Solana now live, we’re giving our users more ways to earn on their holdings, especially those who are new to staking and want to start with smaller investments,” Chai said.

Future Expansion Plans

Luno’s expansion of its staking services is part of a broader strategy to enhance its investment offerings and cater to a growing base of crypto investors in South Africa and other key markets.
The company plans to add more staking assets in the coming months, focusing on high-yield assets and stablecoins to provide more diversified income streams for its users.

In conclusion, the launch of Cosmos staking with a promotional 18% APY offers a unique opportunity for South African investors to earn passive income amid market volatility. However, as de Wit emphasized, the potential for high returns must be balanced with risk management and strategic asset allocation to maximize long-term gains.