Ethereum Staking on Ledger Live: Effortless ETH Interest, From Dream to Reality

By: Bharggavi Ssayee

August 24, 2021 9:23 AM

An Unexpected Partnership Finally Real - It's now been 9 months since the Ethereum 2.0 Network Consensus Layer was launched. Since then, many services have offered staking solutions to users. Ledger, the manufacturer of hardware wallets, has just unveiled a partnership with one of these services.

Ledger and Lido: the unexpected duo finally here

As we have just seen, the Ethereum 2.0 network - at least, its consensus layer - came into being on December 1, 2020 with the launch of the beacon chain.

Since this date, it is possible to participate in the consensus by becoming a validator of the network. As this uses a proof of stake (PoS) mechanism, aspiring validators must stake 32 ETH to participate in the validation of transactions.

Unfortunately until now, holders of Ledger hardware wallets have not been able to use their ETHs without having to move them out of the wallet and therefore put them at risk. This situation just changed on August 13, as a post on Ledger’s official blog explains.

Ledger Live and Lido partnership announced - Source: Ledger

Thus, from this date, users of Ledger hardware wallets will be able to participate in Ethereum 2.0 PoS, via the service offered by Lido.

Staking on Ledger Live

The Lido service is now available in the Ledger Live software, allowing the management of hardware wallets. To do this, you will have to go to the application, in the "discover" tab, and find the Lido application in the Ledger Live catalog.

Unlike if you are operating a personal node, Lido does not require a minimum for the number of ETH deposited in the staking service. Therefore, staking is now open to everyone, even if you don't have the 32 ETH theoretically needed, which is almost $ 100,000 at the current price.

In practice, for each ETH deposited, Lido will assign you the same amount of ETH, a representation of your deposit, which can be traded on many DEXs.

“By storing ETH with Lido, you no longer need to own 32 ETH to become a network validator. Lido allows users to participate in the network with any amount of ETH, without needing to maintain a complex infrastructure while preserving the liquidity of your ETH. For every Ether you put into play through Lido, you will receive stETH in return."

Ledger announcement

Who says validation of transactions says rewards. To date, Ethereum 2.0 has seen a peak return of 18.1% annually, even though it averages 6%. For its part, Lido applies a 10% fee on rewards to ensure its service.

For its part, Ethereum 1.0, the current version of the network, has successfully deployed the hard fork London. This notably introduces the 1559 EIP which aims to change the fee mechanism and which integrates the destruction of ETH into each transaction ... so that some blocks have even become deflationary.