Ledger Live – the Lido staking service – has been extended to Ethereum holders, allowing staking on the platform in anticipation of Ethereum 2.0.
The widely-anticipated news follows the launch of staking services for Polkadot (DOT), Tezos (XTZ), Algorand (ALGO), Cosmos (ATOM) and Tron (TRX) holders on Ledger’s platform.
The Polkadot and Tezos staking services were especially innovative updates for the Ledger platform, with both focusing on proof-of-stake (PoS) consensus technologies – this paved the way for the latest Ether staking update in preparation for the Ethereum 2.0 network upgrade to PoS mining.
Staking provides crypto investors with passive income by allowing them to participate in transaction validation on proof-of-stake blockchain networks.
Anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards.
One of the biggest barriers to Ethereum 2.0 staking is the token requirement of 32 ETH in illiquid Ether holdings. This is inaccessible to most amateur investors and has led to the collaboration between Ledger and Lido.
DeFi innovator Lido allows Ledger’s Ethereum holders to participate in liquidity staking, with user’s joining a larger pool of decentralised investors staking any given amount of ETH.
The percentage return on staked ETH depends on the total staked ETH in the network. An increase in the total amount of staked ETH leads to a decrease in APR.
If the total amount of ETH staked is low, then the reward rate will consequently be higher, with a maximum annual reward rate of 18.10%.
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