After making it possible to stake Polkadot, Tezos, Algorand, Cosmos and Tron, you can now safely stake your ETH directly through Ledger with our partner Lido. You can find Lido in Ledger Live Apps Catalog (in the Discover Section).
Help secure the Ethereum network through Ledger!
Through Ledger, it was already possible to stake specific coins using a proof-of-stake consensus mechanism as Polkadot or Tezos. We are reaching a new milestone, as you can now generate passive income by staking Ethereum directly within Ledger Live interface.
No need to hold and wait for the price to rise. Stake it!
But what does “staking” mean, exactly?
It’s pretty simple. Crypto isn’t only about buying and selling digital assets. It’s also about generating passive income while helping secure the network.
Staking consists in participating in transaction validation on a proof-of-stake blockchain. Anyone with a minimum-required balance of a specific crypto can validate transactions and earn staking rewards.
Participate in Ethereum transition to Ethereum 2.0
With Ledger, you now have the opportunity to participate in the transition to Ethereum 2.0. Indeed, the recent surge in DeFi applications contributed to the network congestion and fees explosion. Hence, Ethereum is moving from a “Proof-of-Work” (PoW) to a “Proof-of-Stake” consensus mechanism to improve the network’s security and scalability.
This transition demands an involved “staking” community to validate ETH transactions. By “staking” ETH, you contribute to the network security whilst earning daily rewards for doing so. Appealing, right?
Make Ethereum staking more liquid with Lido
ETH2 staking is relatively illiquid and inaccessible. Validators must stake 32 ETH and keep them locked until transfers and smart contracts are implemented on the protocol. Let’s face it: it’s not an easily affordable amount of crypto…
But don’t worry! Lido enables “Liquid Staking”. By staking ETH with Lido, you don’t need to own 32 ETH to become a network validator. Lido allows users to participate in the network with any amount of ETH. You don’t need to maintain complex infrastructure whilst preserving the liquidity of your ETH.
Indeed, for each Ether you’ll stake through LIDO you’ll receive stETH in exchange. These can be exchanged, sent, or sold using services such as Paraswap.
Ethereum Staking Rewards and Fees: what you should know
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%.
You can click here to track the current Ethereum staking rate.
Regarding fees, Lido applies a 10% fee on a user’s staking rewards. This fee is split between node operators, the DAO, and an insurance fund. It can be changed by the DAO pending a successful vote.
Why Stake ETH with Lido through Ledger?
- Firstly, Ledger is the safest way to stake ETH. Your private keys remain tightly secured within your Nano hardware wallet, guaranteeing a hack-proof experience. All transactions are confirmed from the security of your hardware wallet.
- Secondly, Ledger Live is an ergonomic app with all you need to access a galaxy of Web3 services, under the same roof. For instance, you can stake ETH with LIDO but also buy or exchange Ethereum, Bitcoin and many others coins. All that from one single app.
- Thirdly, the user interface is easy to use. To stake ETH, all you need to do is the following:
1- Go on the Ledger Live app.
Make sure you installed the Ethereum Nano app on your device (if not go in the Manager section) and created an Ethereum account. If you don’t have ETH yet you can buy some directly in the buy tab in Ledger Live.
2- Go to the “Discover” tab in Ledger Live and select Lido.
This tab shows our new Catalog section in Ledger Live gathering all apps currently and soon to be supported. Essentially, we form a gateway to those different services. We do not manage them but rather provide you with a secure way to access them.
With your Ethereum account connected, you should be able to view your ETH balance directly within your Lido interface.
3- Enter the amount of ETH you want to stake.
After entering the amount you want to stake, just press the Submit button. Note that you will be able to view your Transaction Fee, stETH Balance and Annual Percentage Rate prior to confirmation.
4- Confirm the transaction.
You can now verify your transaction details on your Nano hardware wallet using the LIDO app. Once confirmed, your wallet now contains the amount of ETH you staked – stETH – visible in your wallet. Your stETH balance is updated daily to reflect staking rewards.
At Ledger, we unlock the crypto world by adding more and more coins, tokens, NFTs and DApps into Ledger Live. Adding Lido’s services is consequently a new milestone, and a step closer to becoming your gateway to the Web3 galaxy.
Ledger and Lido combined will definitely make your crypto life easier, and safer.