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recently Blog post, The popular cryptocurrency hardware wallet Ledger announced the establishment of a new partnership with Lido Finance, the Ethereum 2.0 pledge solution, which claims to provide greater accessibility and liquidity to independent pledgers in the market.
Staking is a niche method of investing in the cryptocurrency ecosystem. It allows users to independently or collectively pledge their crypto assets, collect passive income in return, and actively contribute to the sustainability of the blockchain network.
Users try to staking their ether (Ethereum) Has encountered daunting economic obstacles in the past. The current cost of becoming an Eth2 network validator is approximately US$100,000-a figure that many investors in this market simply cannot afford.
Exchanges such as Coinbase or Kraken offer centralized ETH collateral options, but these options require high entrance fees and are obvious Trust issues — For investors who maintain the core industry values of free asset autonomy, this is not ideal.
In recent months, the Ledger interface has provided users with the option of decentralized staking in the form of a consensus mechanism Polkadot or Tezos, but the real demand of the market lies in the smart contract giant Ethereum.
By removing the high threshold for staking ETH, this partnership sets a precedent, allowing users to pledge a nominal amount of ETH instead of the previously required 32 ETH.
As Ethereum and Eth2 set foot in new areas together, mortgages and lending will attract more audience participation and provide profitable opportunities for regular cryptocurrency participants.
In this example of Ledger and Lido; as the blog post explains: “For every Ether you pledge through LIDO, you will receive stETH in exchange. These can be exchanged, sent or sold using services such as Paraswap. “
The stETH token-equal to ETH in a 1:1 ratio-will then be visible in your Ledger wallet. This asset number will be refreshed every day to show the newly accumulated mortgage rewards.
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