To help improve cost and inclusiveness in the market, Ledger has announced support for Ether staking through the use of Lido Finance.
Ledger, a renowned cryptocurrency hardware wallet, recently announced a new relationship with Ethereum 2.0 staking service Lido Finance in a blog post, claiming that the new cooperation will increase accessibility and liquidity for independent stakers in the market.
For those unfamiliar with the cryptocurrency environment, staking is a niche technique of investment that allows users to stake their crypto assets individually or collectively, generating passive income while also actively contributing to the long-term viability of the blockchain network.
Before now, anyone attempting to wager their Ether (ETH) had run up against formidable financial obstacles. Being an Eth2 network validator now costs over $100,000, which is an amount that many investors in this market simply cannot afford to incur.
For investors who want to keep the basic industry concept of free asset autonomy, centralised ETH staking options are available on exchanges such as Coinbase and Kraken. However, these come with a high entry cost and clear trust concerns, making them less than ideal.
Decentralized staking in the form of consensus mechanisms Polkadot or Tezos has become available through the Ledger interface in recent months, but the industry’s true appetite for smart contracts is centred on Ethereum, which has become the market leader in smart contracts.
Users will be able to stake a nominal amount of Ethereum instead of the previously necessary 32 Ethereum, thanks to this partnership’s elimination of the high barrier-to-entry for staking Ethereum.
staking and even lending will become more popular as Ethereum moves into a new frontier with Eth2 and provide attractive options for normal cryptocurrency participants as the platform enters a new phase.
In the case of Ledger and Lido, as explained in the blog post, “for each Ether you stake through LIDO, you will receive stETH in exchange.” Using services such as Paraswap, these can be traded, transferred, and sold.”
In your Ledger wallet, you will see stETH tokens (which are equal to one Ethereum unit at a 1:1 ratio). A daily refresh of this asset figure will reveal the most recent staking rewards that have been accrued.
