This guide will explain how to use Compound Finance with Ledger Lending on a Ledger Nano hardware wallet.
Ledger has now introduced the new Ledger “Lend” feature, giving users access to Compound Finance directly through their Ledger Nano S & Nano X devices. With Ledger Live and Compound integration, you are able to lend your cryptos such as DAI, USDT, or USDC and earn interest.
With Lend, your tokens are secured within the safety of your Ledger hardware wallet. Ledger gives you full control over your crypto, on top of lending, you can also manage, buy, sell, or stake your crypto anywhere with the app.
How to Earn Interest with Ledger & Compound Finance
Ledger Lend & Compound Finance
Compound Finance is a decentralized and open-source protocol that gives you the possibility to lend digital assets. When lending, you deposit your tokens into the compound smart contract. In exchange, you get cTokens which represent the claim to your lent assets and interests.
When lending with Ledger, your cTokens are secured by your hardware wallet, meaning no one can claim your assets. When you want to get your assets and interests back, you basically send your cTokens back to the smart contract and get the associated assets in return.
Ledger gives you full control over your crypto. On top of lending, you can also manage, buy, sell, swap or stake your crypto anywhere with their management app, Ledger Live.
Benefits of Lending with Compound with Ledger
Security: Ledger hardware wallet secures your cTokens and no one can claim your assets while lending them.
Control: As well as lending crypto with Compound, you can also buy, exchange and grow your assets through the Ledger Live app.
How to Lend with Compound on Ledger
- Go to the Compound lending app pages and click ‘Connect’ in the upper right corner.
- Select the Ledger option.
- Lend your tokens with Compound secured by your Ledger wallet. When you deposit your tokens you will receive for cTokens (Compound) in exchange. These represent your claim to the assets and interest.