Ledger Live Facilitates Ether Staking Option by Small Investors
In the latest blog post, well-known cryptocurrency hardware wallet Ledger unveiled a fresh collaboration with Ethereum 2.0 (Eth2) staking provider Lido Finance, claiming better market connectivity and floating supply. Staking is a specialized way of gaining exposure in the cryptocurrency industry.
The process involves freezing or locking of crypto assets individually or collectively and aiding the strengthening of the blockchain network, while earning passive income.
Users who attempted to participate in staking of Ether (ETH) in the past were faced with formidable economic obstacles. The present cost of being an Eth2 network verifier is approximately $100,000, which several investors in this sector cannot handle.
Centralized ETH staking options are provided by exchanges like Coinbase and Kraken, but they come with a high entrance cost and apparent trust issues, making them unsuitable for large investors who cherish the fundamental industry value of free asset liberty.
In the past few months, the Ledger interface has given customers the possibility of decentralized staking in the format of consensus protocols such as Polkadot and Tezos, but the market’s true desire was for the smart-contract behemoth Ethereum. This collaboration has laid the groundwork by removing the steep entry barriers for staking ETH, enabling users to stake a minimal amount of ETH rather than the 32 ETH earlier needed.
As Ethereum begins a new phase with Eth2, staking and lending will attract a larger crowd and provide profitable possibilities for ordinary cryptocurrency users. As the site article notes, in this case of Ledger and Lido, “for each Ether staked via LIDO, you’ll get stETH in return.” These may be traded, transferred, or sold utilizing platforms like Paraswap. Staked Ether or stETH tokens that are pegged to ETH at a 1:1 ratio will then appear in users Ledger wallet. This asset value will be refreshed daily to reflect freshly collected staking benefits.