Crypto exchange Binance has said that it does not use Dogecoin and Litecoin staking for third party lending or other profit oriented purposes.
According to the statement:
“LTC and DOGE are not used in on-chain staking, as they are blockchain-based tokens with algorithms other than Proof-of-Stake. User funds remain with Binance and we apply a very strict risk management approach to ensure their safety.”
A company representative has also noted the platform does not use these assets in lending transactions, paying interest on deposits from its own treasury.
Binance launched on July 19 the Locked Staking program for tokens based on the Proof-of-Work (PoW) consensus algorithm, which provides an annual reward of up to 3.1% for DOGE and up to 7% for LTC.