The DeFi platform Lido can now be directly coupled with the hardware wallets Ledger Nano S and Ledger Nano X. The advantage: this allows Ethereum (ETH) and Terra (LUNA) to earn interest passively with the utmost security.
In the system of the popular hardware wallets Ledger Nano S and Ledger Nano X there is a new feature interesting for investors. This is because Ledger has made its hardware wallets compatible with Lido, which enables secure staking in particular. Currently, Lido offers staking for Ethereum (ETH) and Terra (LUNA). Ethereum can thus be expected to pay 4.4 percent APR, while Terra has a projected APR of 3.4 percent.
Why ETH and LUNA are staking over 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 paid out for doing so. However, as Ledger explains in a blog post, staking is tied to high barriers to entry, especially for ETH. Ethereum is preparing for version 2.0 and has a parallel blockchain called Beacon for this purpose, in which Proof-of-Stake is already applied. To contribute one’s ETH there privately and directly for staking requires technical knowledge and a minimum of 32 ETH. Crypto exchanges like Binance take away these problems and offer staking for Ethereum even without minimum amounts and own hardware. But there you would have to entrust Binance with your ETH directly and then no longer have the private keys under control.
LIDO as a DeFi project goes one step further. The private keys remain with you when you deposit ETH into the Ethereum Staking Pool there via Ledger Live and a Ledger Nano S or Nano X. This is a higher level of security than with Ethereum. This provides a higher level of security than Ethereum Staking via a crypto exchange. At Lido, you get stETH in return for your ETH deposited for staking at a ratio of 1:1, which again can be used around in a variety of DeFi platforms like Curve, Harvest Finance or Aave. By the way, you can also withdraw your Ethereum deposited for staking at Lido via such DEX by exchanging the stETH back into ETH. Thus, you don’t have to wait for when the Staking Ethereum 2.0 will become officially usable again – because that is only planned with the upgrade of the mainnet at Ethereum and could still take one to two years. Things are easier with Terra (LUNA), where the blockchain is already based on proof-of-stake.
Currently in preparation for staking at Lido are AAVE and Solana (SOL) . Here, too, targeted annual interest rates can be expected that can keep up with those offered by crypto exchanges. In addition, the ecosystem of DeFi projects 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 don’t have a Ledger hardware wallet yet, the now possible linking with Lido is another good argument for the purchase. Because actually, every crypto investor should store his assets in Bitcoin (BTC) and Co. on a hardware wallet, so that private keys as crucial passwords are secured 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 a top model is also suitable for interaction with smartphones and tablets due to Bluetooth. Those who do not use their Ethereum or Terra in day trading now have the attractive option of safely earning interest through staking via the combination with Lido and Ledger.
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