On November 16, Ledger announced the introduction of a new lending service on its Ledger Live wallet, which utilizes Compound’s protocol to enable users to lend out their stablecoins and receive interest.
When a client wants to lend their tokens, they deposits them into Compound and receive cTokens, which represent his claim to both the assets and the interest on them. Once the lender decides to claim back their investment, they can withdraw their cTokens and exchange them for other currencies.
Compound’s smart contracts allow users to earn interest through the cToken’s exchange rate, which increases in value in relation to the underlying asset. At present, all transactions that occur on Compound require the usage of one of two types of cTokens, cERC-20 or cEther.
According to the announcement, Compound will integrate into Ledger Live’s system to enable users to stay in control over their digital assets. Ledger’s lending feature will provide high security to the deposited crypto by storing it on its hardware wallet.
Ledger stated that it provides its customers with the required tools to achieve financial freedom and at the same time remain in full and secure control of their money. The company said that it will continue to expand its “arsenal” of tools to ensure the “best possible crypto experience” for its users.
The new service comes as an addition to the already established options for buying, swapping, and staking crypto through Ledger’s suite of products. The currencies currently available for lending are DAI, USDT, and USDC.