Ledn Expands Growth Account to Include Ether Deposits
Crypto lending platform Ledn is now offering users the opportunity to earn up to 2% APY on their ether deposits through its Growth Account. Starting from October 12, Ledn users can easily transfer their ether to the Growth Account and begin earning interest immediately. This eliminates the complexities associated with manual ether staking, which requires running an Ethereum node and depositing 32 ETH. While Ledn’s yield for ether is lower compared to other liquid staking platforms like Lido Finance, Coinbase, and Rocket Pool, Ledn emphasizes that its users benefit from faster staking and unstaking processes.
Ether Staking Expected to Reach 50% Supply Next Year
According to Staking Rewards, the current staking rate for ether stands at around 20% of the total supply. The Block’s data dashboard shows that over $20 billion worth of value is locked in liquid staking alone. Ethereum developers predict that staked tokens will make up more than 50% of the entire ether supply by May 2024. To address potential liquidity issues, they have proposed a plan to mitigate the negative effects of high levels of staked ether.
Ring-fenced Growth Accounts for Added Security
Ledn introduced its Growth Accounts in response to the collapse of centralized lending platforms in 2022, aiming to restore trust in the sector. These accounts are legally ring-fenced, meaning users are only exposed to the counterparties generating their yield and are protected if Ledn were to go bankrupt. Ledn also confirmed that its USDT Growth Accounts will launch alongside the new ETH Growth Accounts, offering up to 8.5% APY on USDT stablecoins. However, these accounts are not available in Canada or the U.S. initially.
Expanding Ledn’s Suite of Products
Ledn plans to roll out ETH support across its entire suite of products in the coming months. Previously, Ledn introduced non-interest earning Transaction Accounts and interest-earning Growth Accounts for Bitcoin and USDC. Users have the flexibility to switch between the two account types to maintain control over their assets. Ledn operates globally, providing savings accounts and loans to clients in over 130 countries. The platform is also working with qualified institutions to ensure transparency in its yield generation methods.
Hot Take: Ledn Expands Yield Options with Ether Deposits
Ledn’s decision to include ether deposits in its Growth Account offering demonstrates its commitment to providing profitable yield options for users. By simplifying the staking process and offering immediate interest earnings, Ledn aims to attract more crypto enthusiasts seeking a user-friendly experience. While its yield for ether may be lower compared to other platforms, Ledn emphasizes the advantages of faster staking and unstaking processes. With the expansion of its suite of products, Ledn continues to establish itself as a reliable and transparent player in the crypto lending space.
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