A Look at Five Ethereum DeFi Apps Changing the Savings Experience
Editor's Note: This article is from:Ethereum enthusiasts (ID: ethfans)Editor's Note: This article is from:
Ethereum enthusiasts (ID: ethfans)
Ethereum enthusiasts (ID: ethfans)
, Author: Will Brealey, Translator & Proofreader: Zhou Jin & A Jian, reproduced by Odaily with authorization.
Today, interest rates around the world are sluggish, and expectations for the outlook for the world economy are generally pessimistic. In the UK, outgoing Bank of England Governor Mark Carney warned that headline interest rates could be cut from 0.75% to just 0.50% as early as this month.
What many people don't know is that there are many applications (commonly called "DeFi (decentralized finance) applications") on the Ethereum blockchain, with which you can earn ten times the equivalent of traditional institutions. much yield. The apps are easy to use, and even new users can set up in minutes.
My point is that saving money is just one application of this new technology. Now, let’s take a look at 5 novel ways you can try out Dai, the USD-pegged stablecoin issued on the Ethereum blockchain.
Too long to watch:
1: Start earning 6% interest in just three clicks with Argent and Compound
3. Use PoolTogether to enter weekly free draws
4. Donate 6% of your proceeds to rTrees and plant your own public welfare trees
5. Using DeFiZap, you can use DAI to earn interest and get the risk-return of ETH
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What are DeFi applications?
DeFi (pronounced "DEE-FI"~) is an umbrella term for a class of Ethereum-based applications that are numerous and growing. Its main features include:
Open source (so anyone can inspect and contribute to the code base)
Non-exclusive (so anyone can use it regardless of race/age/gender/international/sexual orientation)
Non-custodial (so all your assets are always under your control without third party intervention)
DeFi has emerged in the field of cryptocurrency and is in a stage of rapid development. Today, the total value of funds circulating in DeFi projects has reached 764 million US dollars, and it has increased by 30 million yesterday alone. On the DefiPulse website, you can see the rapid development of DeFi.
1: Start earning 6% in just a few clicks with Argent and Compound
step:
With Agent Wallet, you can easily buy DAI and use it to earn interest, and you can control your funds throughout the process. You will also get a free ENS domain name (that is, a human-readable Ethereum fund address, similar to activism.xyz.eth), and through Argent users can send tokens in the Ethereum network for free.
Using DAI to lend on the Compound lending market is the source of your interest; currently, the deposit rate on the Compound market is slightly less than 6%, about 5.8%. Currently, only U.S. users can directly purchase cryptocurrencies through Argent, but support for European users will go live this month.
step:
Download the Argent wallet on Android or iOS;
Buy DAI directly with your home currency;
2: Through Maker Oasis, see your 6% asset growth in real time
step:
Maker (the organization that issues and maintains the value of the DAI stablecoin) also provides a set of tools through their Oasis app. These tools are easy to use, but slightly more cumbersome than using the Argent mobile app. You need to download MetaMask, a Chrome browser extension, and send DAI to your address along with some ether (for transaction fees).https://oasis.app/It's great to see your real-time earnings here!
step:
1. Navigate to
;2. Link to your MetaMask wallet; 3. Click 'Save', 'deploy proxy', and confirm in the pop-up window; 4. Select the deposit amount and sign the transaction.
Tip: If you don't want to do it yourself, but want to earn the benefits that the Maker system gives you, Chai is a viable option - the token will increase in value at the same rate as Oasis' DAI deposit rate. You can start earning 6% just by holding Chai. You can buy Chai directly here, or exchange it with Ether or other tokens on Uniswap.
3: Use PoolTogether to enter weekly free draws
step:
With Compound or Oasis, you can lock your DAI and earn 6% interest.https://app.pooltogether.com/；
step:
Click 'Join Pool', choose the amount of DAI to deposit, and sign the transaction with MetaMask.
There is another token called rDAI. Its function is that you can give up the 6% interest and use it directly. The DAI will be sent to Trees For The Future, a nonprofit that has planted more than 43 million trees in Africa over the past three decades. The organization improves the local ecological environment and makes a direct contribution to the fight against climate change. You can find information about this organization here.
step:
navigate to
Select the number of trees you wish to plant each year;
Sign transactions via MetaMask.
5: Use DeFiZap to earn DAI interest while obtaining ETH risk returns
You must find it unbelievable, right? How is this possible? To earn interest from DeFi applications, one must generally own DAI. Holding DAI is all well and good, but you could have invested that money in Ether. In doing so, you may miss out on potential gains that could be much higher than 6% (that is, the gains that the skyrocketing price of ETH will bring to you). When you think about it, Ethereum is down over 90% from its peak.
DefiZap's leveraged liquidity pool solves this problem. A portion of your account balance will be used to provide liquidity on the Uniswap DEX so you can earn some income. The rest of the funds will be used to open leveraged long positions in the Fulcrum app, allowing you to double your gains and losses from changes in the value of Ether.
Combining these two operations, you can use DAI to earn income without missing out on the benefits of ETH price increases. Because in the end, you still maintain about 100% exposure to ETH.
With DeFiZap, you only need a few clicks to complete the setup of this complex system, which can save you about 8 minutes.
DefiTutorials gave a good explanation of Zap usage.
step:
navigate to
text
Summarize
Translator's Note: In the above, the Zap protocol uses the Fulcrum application to complete the above functions. But now it has been replaced by the leverage function provided by the Synthetix protocol. Fulcrum was attacked in mid-February 2020. If it has not been upgraded for a while, it should be used with caution.
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Summarize
DeFi is growing at an exponential rate with new projects being launched every week. The ease of use of these apps is surprising: anyone with a MetaMask wallet and some ether can take advantage of the revolutionary technology within a few taps of their phone.
However, while the infinite possibilities that Ethereum brings are closer than ever, it is still necessary for new users to have a thorough understanding of the risks.
Generally speaking, when you are using DeFi as well as cryptocurrencies, you must be fully responsible for your funds. If you make a mistake (for example, sending your funds to the wrong address), there is no way to recover. You have to double check.
