We can use onlykey-cli to generate random keys on the device. I’m trying to use an Onlykey Duo to unlock a ZFS encrypted dataset and would like to avoid storing the key on my computer.
Ideally, this would be possible to do with a script, and do not require interaction from the user (beside plugging the FIDO/GPG device).
(I do a similar thing with a LUKS encrypted device and FIDO2, but this is not possible with ZFS, it only supports passphrase, raw, hex).
But these keys can only be used with OnlyKey agent.
You could just store a long passphrase on OnlyKey, you can use both the username and password fields which are 58 characters each so a 116 character password.