Crypto platform Ledn has included Ethereum in its crypto savings products. In this vein, Ledn has launched new ETH Growth Accounts that offer up to 2% APY without the complexity of manual staking. Before the leading altcoin Ethereum, Ledn offered Bitcoin, USDC and USDT savings products.
Ledn launches Growth Account for leading altcoin
Crypto lending platform Ledn is expanding its Growth Account offering, which allows users to earn up to 2% APY on Ethereum deposits, in addition to Bitcoin, USDC and USDT savings products, starting October 12. According to the statement, Ledn will transfer ETH to Growth Accounts to start earning interest immediately, unlike the complex process of manual ETH staking. Thus, it will provide a more user-friendly experience.
Manual solo ETH staking generally yields the highest rewards. But it involves running an Ethereum node and depositing 32 ETH to activate a validator to participate directly in the network consensus. However, liquid staking options are also available on platforms such as Lido Finance, Coinbase and Rocket Pool. It also allows users to earn ETH staking rewards when unlocking the utility across various DeFi applications in the form of a liquid staking-derived altcoin token. Such platforms usually charge a fee from staking rewards. However, Coinbase takes a 25% cut.
What is the crypto platform’s advantage over Ethereum staking?
Ledn’s yield is lower than its liquid staking counterparts for altcoin ETH. Lido Finance, Coinbase, and Rocket Pool are currently offering a theoretical APR of up to 3.87%. However, Ledn says its users do not experience delays in staking and resolving their ETH. So he notes there are trade-offs either way. Ledn co-founder and CSO Mauricio Di Bartolomeo said in his statement:
Users were constantly asking us to add Ethereum. That’s why, in line with our mission to provide only the best and most profitable return options, we are excited to introduce ETH support in Ledn’s Growth Accounts. Setting up this yield option is much easier than staking local ETH. Going forward, we are working to expand ETH support across the entire Ledn product suite in the coming months.
ETH staking will reach 50% of supply next year
As you follow from Kriptokoin.com, staking has a special place in the crypto world. According to Staking Rewards, the current staking rate accounts for approximately 20% of all ETH in circulation. According to the data dashboard, over $20 billion in value is in liquid staking alone.
Altcoin developers said on September 7 that staked tokens will reach more than 50% of the entire ETH supply by May 2024. He also noted that this would negatively impact liquidity. Therefore, they proposed a plan to “mitigate the negative externalities of very high levels of staked ETH supply.” This will likely slow down the growth in staked ETH.
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