Lending Comes To Ledger Live

Hey Jesstackers

It's safe to say the DE-FI cat is out of the bag; people are gravitating to the idea of managing their money, finding yield which isn't easy in the traditional system and showing up the banks in the process. Crypto has come a long way in the last 4 years, and DE-FI has been a big part of that development.

While the vast majority of DE-FI is still rampant speculation and experimentation with food-based tokens, there are a few projects that have become standouts, such as Uniswap, Curve, and Compound.

The trouble with DE-FI

DE-FI has also been plagued with hacks as poorly written smart contracts are rushed to market to try and capture this demand for yield. These DE-FI dapps are also notoriously hard to use for the average individual, and managing your portfolio can trades can put off a lot of people.

Leger live launches lending

It was only a matter of time before these protocols merged with wallets and I called this more than a year ago didn't I @nickyhavey, and now it's finally here, while it's been running pretty low key for the last 3 months now.

One of the markets favourite cold wallets, Ledger, which I use myself and I'm pretty happy with the product has connected with a DE-FI platform to allow cold storage DE-FI.

Using compound to get a yield

Compound is a lending service that leverages Ethereum and is now available directly through Ledger Live. While Compound offers a range of financial tools, Only the lending feature is available directly through Ledger Live.

When lending, you deposit your tokens into Compound smart contract. In exchange, you receive cTokens which represent the claim to your lent assets and interests.

Currently, lending is restricted to 3 stable coins:

How lending via Compound works

What you would do is log in to your leger live, deposit your stable coins and then lock it into a smart contract that will pay you a return based on the table above.

If you need a more step by step tutorial check out this one from everybitcounts

Any return comes with risks

Remember this still carries risk, such as the smart contract being hacked, ETH is also not the most decentralised chain you'll ever use since Infura basically runs most of the network, but that's a story for another day.

I think this is a pretty nifty feature, and since I have some stable coins lying around, I will be putting them to work in my ledger.

I don't know if it's misguided, but I feel with ledger there's an additional level of security since your cTokens are secured by your hardware wallet. Cold storage means no one can claim your assets while lending them, not that it's idiot-proof, but still, I feel its a safer bet than using a CE-FI platform or connecting my meta mask.

Remember you're also dealing with synthetic assets when you're lending.

• It's no secret Tether has been hit with a lot of FUD and is currently investigated by the NYAG,
• USDC seems a bit safer for the moment as Coinbase who back it, has kept rather clean
  Then there's DAI, the decentralised coin base don ETH as collateral to mint these coins.

Consolidating into Ledger

Ledger is also making things easier since you full control over your crypto - on top of lending; you can manage, buy, sell, or stake your crypto anywhere with only one app, Ledger Live. The more features they start to add to Ledger Live, the more I'd be willing to ditch the hot wallets I currently use for different lending and trading.

It may even be worth picking up a second ledger, one for my DE-FI and one for my precious BTC.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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