According to recent media reports, the cryptocurrency lending platform Ledn is expanding its offerings by introducing Growth Accounts, allowing users to earn up to 2% APY on deposited Ether, starting from October 12th. This comes in addition to their existing savings products for Bitcoin, USDC, and USDT.
Unlike the manual and complex process of staking Ether, Ledn claims that their new product will provide a more user-friendly experience. Users can simply transfer Ether to their Growth Account to start earning interest immediately.
It’s worth noting that while manual staking of Ether can offer higher rewards, it involves running an Ether node and staking 32 ETH to activate direct participation in the network’s consensus.
Other liquidity staking options are available on platforms like Lido Finance, Coinbase, and Rocket Pool, allowing users to earn staking rewards while unlocking utility across various DeFi applications in the form of staked liquidity tokens. However, these platforms often charge fees for staking rewards, with Coinbase taking a 25% cut.
Ledn’s interest rates for Ether are lower compared to some of these liquidity staking providers. For example, Lido Finance, Coinbase, and Rocket Pool currently offer theoretical APRs of up to 3.87%.
The growth of Ledn’s Growth Accounts is partly attributed to the turmoil in the centralized lending sector in 2022, which included the collapse of companies like Celsius, BlockFi, and Voyager Digital, severely impacting trust within the industry.
These savings accounts are legally separated, meaning that users only interact with the partners that generate profits for them, are protected if Ledn goes bankrupt, and don’t bear the risk of each account type. For example, the Growth Bitcoin Account doesn’t carry the same risk as the Growth Ether Account and vice versa.
Ledn has also confirmed that their USDT Growth Account will be launched alongside the new ETH Growth Account on October 12th, offering customers an APY of up to 8.5% for the stablecoin USDT.
However, the company notes that Ledn’s ETH and USDT Growth Accounts won’t be available in Canada or the United States upon launch.
Previously, Ledn’s USDC and Bitcoin savings accounts were divided into Non-Interest-Bearing Accounts and Interest-Bearing Accounts, starting with the Growth Bitcoin Account on August 3rd with an APY of 1%. The transition process for its USDC Growth Account began on September 12th with an APY of 8.5%. Ledn allows users to freely convert between transactional and growth accounts to maintain control over their assets.
Ledn states that they provide savings and lending accounts for customers in over 130 countries and are working with qualifying organizations to bring more transparency to profit generation.