Ledger has added support to Lido, a pool that allows you to generate interest through staking in Ethereum 2.0. All of this through a decentralized platform known as Lido, which ranks second among Ethereum's largest staking pools.
The news was released through the official Ledger portal. In the letter, the inclusion of the DeFi Lido within the apps available to download for Ledger devices from the Ledger Live interface is made official.
Staking is a system implemented in the network that allows beginning the transition from Ethereum 1.0 to Ethereum 2.0 ( from proof of work to proof of stake ). This method consists of "stalling" funds (depositing them for long periods) to serve as validators of the network. The original staking of ETH requires that at least 32 ETH be blocked, which also requires technical knowledge in the area.
Lido, and its pool system, offers a group staking platform, facilitating technical tasks to reduce them to a minimum (only deposit and withdraw funds). It also facilitates much lower staking levels, in which, according to Ledger's statement, users can deposit any amount of ETH they want.
The interesting thing about staking in Lido, contrary to the traditional staking of Ethereum 2.0, is that users can withdraw their balance at any time. This, because at the time of deposit, users receive a 1: 1 equivalent token with ETH, called stETH. This token can be exchanged for ETH or for any other within the exchange markets available on the Ethereum network, such as UniSwap.
It is worth remembering that staking is not a modality that was born with Ethereum 2.0, but it is the central basis of the operation of consensus algorithms that works under the proof of stake. As its name implies, the validators of a network that work under this type of consensus can only validate transactions by demonstrating their participation in the same network, blocking (staking) their funds.
Lido on Ledger
Lido does not belong to Ledger, nor is it managed by them because it is a 100% decentralized platform. The integration within Ledger just means that now users will be able to connect to this DeFi development using their cold storage devices.
DeFi can be used with any of the Ethereum wallets, including Metamask or Trust Wallet. However, these wallets are permanently connected to the internet, which can be a disadvantage. With Ledger, the private keys are stored in a special security device.
How much can be generated in Lido
Lido currently offers an annual interest rate of 4.4%. This interest rate is paid to the holders of stETH. The more tokens a user has, the more interest they can generate.
However, it should be noted that this interest rate is calculated based on the total generated by the pool, so it is not an individual interest rate, which depends on the total number of shares that a user has within Lido. For example, if the pool has a total capital of $ 1 million in ETH, and a single user owns 10% of that capital ($ 100,000), it means that that user will receive 10% of the 4.4% interest it generates. the pool in total. Lido charges a 10% commission on each deposit.
[link] [comments]
from Bitcoin - A Peer to Peer Electronic Cash System https://ift.tt/3tcCZwU
No comments:
Post a Comment
We have received your message and would like to thank you for writing to us, we will reply by email as soon as possible.
Talk to you soon,
[Pakcoin Worker]
[Pakcoin Global]