Sunday, September 26, 2021
HomeNewsLedger hardware wallets now compatible with Lido - enables Ethereum staking -...

Ledger hardware wallets now compatible with Lido – enables Ethereum staking –

The DeFi platform Lido can now be linked directly to the Ledger Nano S and Ledger Nano X hardware wallets. The advantage: Ethereum (ETH) and Terra (LUNA) can earn passive interest with the greatest possible security.

The system of the popular hardware wallets Ledger Nano S and Ledger Nano X has a new feature that is interesting for investors. Because Ledger has made its hardware wallets compatible with Lido, which enables secure staking in particular. Lido currently offers staking for Ethereum (ETH) and Terra (LUNA). With Ethereum, 4.4 percent annual interest can be expected, with Terra it is 3.4 percent projected annual interest.

Why ETH and LUNA stake via Ledger and Lido?

Staking is offered in many blockchains that have proof-of-stake as a protocol. Staking increases the security and performance of a blockchain and rewards are distributed for this. As Ledger explains in a blog post, staking is tied to high entry barriers, especially at ETH. Ethereum is preparing for version 2.0 and has a parallel blockchain called Beacon, in which Proof-of-Stake is already being used. In order to directly and privately contribute your ETH to the stake, you need technical knowledge and a minimum of 32 ETH. Crypto exchanges like Binance relieve you of these problems and offer staking for Ethereum without minimum amounts and your own hardware. But there you would have to entrust your ETH to Binance directly and then no longer have the private keys under control.

LIDO as a DeFi project goes one step further. The private keys stay with you if you bring ETH into the Ethereum staking pool there via Ledger Live and a Ledger Nano S or Nano X. This means that security is higher than with Ethereum staking via a crypto exchange. At Lido, in return for the ETH you have deposited for staking, you get stETH in a ratio of 1: 1, which can be used in a variety of DeFi platforms such as Curve, Harvest Finance or Aave. You can also use such DEX to withdraw the Ethereum you have put in for staking at Lido by exchanging the stETH for ETH. So you don’t have to wait for when the staking Ethereum 2.0 will officially be used again – that is only planned with the upgrade of the mainnet at Ethereum and could take another one or two years. Things are easier with Terra (LUNA), because here the blockchain is already based on proof-of-stake.

AAVE and Solana (SOL) are currently in preparation for staking at Lido. Here, too, we can expect targeted annual interest rates that can keep up with those offered by crypto exchanges. In addition, the ecosystem of DeFi projects that are compatible with Lido is constantly growing. You can find a current overview here.

Conclusion: staking via Ledger Nano S or Nano X with Lido

If you do not have a Ledger Hardware Wallet yet, the connection with Lido that is now possible is another good argument for the purchase. Because actually every crypto investor should store his credit in Bitcoin (BTC) and Co. on a hardware wallet so that private keys are secured as crucial passwords separately from the Internet. The Ledger Nano S as an entry-level model has convinced us as well as hundreds of thousands of other people, the Ledger Nano X as the top model is also suitable for interaction with smartphones and tablets thanks to Bluetooth. If you do not use your Ethereum or Terra in day trading, you now have the attractive option of securely staking interest through the combination with Lido and Ledger.

If you don’t have a Binance account yet, you can set up one here and save 10% fees, you can find out everything you need to know here.

Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


Please enter your comment!
Please enter your name here

Trending News

Recent Comments