Ledger users can now earn interest on DAI, Tether and USD Coin

By November 17, 2020Ethereum
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Key facts:

Compound pays, on average, 2.43% annually to deposit these coins in its protocol.

The user delegates custody of the cryptocurrencies to the Compound smart contract.

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Ledger Live, the native application of the renowned hardware wallet company, now allows deposit the DAI, Tether (USDT) and USD Coin (USDC) stablecoins directly on the Compound platform from the same interface. Thanks to this, users can earn interest for keeping their funds locked there.

According to an announcement by Compound, they consider that this “is now the easiest way to interact with the protocol using a hardware wallet, without the need to enter a website.” In order to access this service, it is necessary to have installed the latest version of Ledger Live, 2.16.0, which can be downloaded from the ads window of the application itself.

As of this writing, Compound pays 2.61% per annum for depositing DAI; 2.51% per annum per USD Coin; and 2.17% per annum for Tether. According to DefiPulse, this is the second largest loan platform within the spectrum of DeFi (decentralized finance), after Maker. There is the equivalent of USD 1.47 billion deposited in Compound.

The three cryptocurrencies that can be deposited in Compound from Ledger maintain parity with the US dollar and are developed on the Ethereum blockchain. For this reason, the user must also have Ether (ETH) in your wallet to pay the commissions corresponding to the smart contract.

As of this writing, Compound pays 2.43% on average for depositing DAI, USDC, and USDT. Source: Ledger Live.

It is recommended that the interested party evaluate the cost of the commissions in ETH and compare it with the amount of DAI, USDT or USDC that they want to invest and the returns it will generate. That way you can decide if it is a good decision or not. The same Ledger app warns about the possibility of paying high commissions in case the network is congested.

Ledger Live warns its users of the possibility of high fees on Ethereum if the network is congested. Source: Ledger Live.

Anyone wishing to use this new Ledger service must understand that they are delegating their cryptocurrencies to the Compound smart contract, which is not audited by Ledger. This incorporates new attack vectors that could compromise security.

The manufacturer of the purse assures in an institutional statement that only the owner can withdraw the funds because you are given an equivalent amount of cDAI, cUSDC or cUSDT that serves as collateral.

Other new features of version 2.16.0 of the application Ledger are alerts about phishing attacks in progress; the incorporation of standard symbols of cryptocurrencies; and an improvement in the default commission price for transactions on Ethereum.

Compound pays, on average, 2.43% annually to deposit these coins in its protocol.

The user delegates custody of the cryptocurrencies to the Compound smart contract.This article contains referral links. […]

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