Ledger has integrated the ability to earn on stablecoins through its Ledger Live platform in collaboration with DeFi platform Kiln. This move makes DeFi-based services more accessible and secure.
How Does Stablecoin Yield Work?
Self-custody remains a key element of this feature. Users can interact with DeFi protocols without relinquishing control of their private keys. The process includes:
* Connect your Ledger wallet to your computer or phone. * Open the Ledger Live application. * Navigate to the new yield feature powered by Kiln. * Select the stablecoin for deposit (USDC, USDT, DAI, or USDS). * Initiate the transaction, securely signing it on your Ledger device. * Conditions in the DeFi protocols may change, but you can track your earnings within Ledger Live.
What Yield Can You Expect?
Initial reports indicate that yield rates range from 5% to 9.9% APY. This range is competitive against traditional finance and securing platforms. It is expected that actual yields will vary based on market conditions and the demand for borrowing stablecoins.
Benefits and Risks of Using Ledger Live for Earning Yield
The new feature offers several advantages:
* Security: users retain control of their private keys. * Convenience: manage yield within the familiar Ledger Live interface. * Accessibility: reduces the entry barrier to DeFi for newcomers. * Risks: users must be aware of potential challenges such as smart contract risks and yield volatility, which cannot be completely eliminated.
The integration of stablecoin yield features into Ledger Live makes crypto income more accessible and secure. Despite inherent DeFi risks, Ledger's new offering provides users with the opportunity to effectively balance yield and security.
