For cryptocurrency holders seeking ways to make their digital assets work for them, the prospect of earning passive income is always exciting. Now, users of the popular Ledger hardware wallet have a powerful new option right within their familiar app interface. Ledger, a leader in secure self-custody solutions, has partnered with Kiln, a prominent enterprise-grade staking and DeFi platform, to bring seamless Stablecoin Yield earning directly to the Ledger Live application.
Ledger and Kiln Partner for Secure Earnings
This collaboration between Ledger and Kiln represents a significant step forward in making DeFi opportunities more accessible and user-friendly. Traditionally, participating in DeFi yield farming or lending protocols required navigating complex web interfaces and managing various wallets and permissions. By integrating Kiln’s expertise directly into Ledger Live, users can now access yield-generating strategies without ever having to move their assets off their Ledger device or interact with external sites in a risky manner.
What is Stablecoin Yield on Ledger Live?
At its core, the new feature allows Ledger users to lend their stablecoins through established DeFi protocols. In return for providing liquidity, they earn a yield, essentially interest on their deposited assets. According to reports from The Block, the initial offering presents attractive potential returns:
- Earn 5% to 9.9% Annual Percentage Yield (APY)
- Available directly within the Ledger Live app
- Powered by reputable DeFi lending protocols
This APY range is competitive within the stablecoin lending space and offers a compelling alternative to traditional savings accounts, especially for users already holding stablecoins.
Earn on Popular Stablecoins
The initial rollout supports several of the most widely used stablecoins in the crypto ecosystem, providing flexibility for users holding different assets:
- USDC (USD Coin)
- USDT (Tether)
- DAI (Dai)
- USDS (Stablecoin from Stably)
By supporting these major stablecoins, Ledger and Kiln are catering to a broad base of users looking to earn yield on their existing holdings without needing to swap into less common assets.
Maintaining Self-Custody: The Ledger Advantage
Perhaps the most critical aspect of this new feature is the commitment to Self-Custody. Unlike centralized platforms where you deposit funds and give up control of your private keys, the Ledger/Kiln integration allows users to participate in DeFi lending while their private keys remain securely stored on their Ledger hardware wallet. This significantly reduces counterparty risk and protects users from potential hacks or failures of centralized entities. Your assets stay under your control throughout the process.
Accessing Yield via Ledger Live
Accessing this new yield feature is designed to be straightforward for existing Ledger users. The functionality is integrated directly into the Ledger Live application, the primary interface for managing assets on a Ledger device. Users can likely find the option within the ‘Discover’ section or a dedicated ‘Earn’ tab, where they can select the stablecoin they wish to deposit, view the current yield rates, and initiate the lending process with confirmation required on their hardware wallet.
While the process is simplified, it’s important for users to understand that participating in DeFi lending involves smart contract risk and variable yields. However, the integration through a trusted platform like Ledger and a partner like Kiln aims to provide a more secure and accessible gateway compared to direct interaction with complex DeFi protocols.
In Summary
The partnership between Ledger and Kiln to offer stablecoin yield earning within Ledger Live is a notable development for the crypto community. It combines the security of hardware wallet Self-Custody with the potential for passive income from DeFi. By providing easy access to Stablecoin Yield on popular assets like USDC, USDT, DAI, and USDS, this feature empowers Ledger users to potentially earn 5% to 9.9% APY on their holdings directly through the Ledger Live app. This move by Ledger and Kiln lowers the barrier to entry for DeFi yield opportunities while prioritizing the safety and control that Ledger users expect.
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