Access the world of DeFi, straight from your Eidoo wallet.
UPDATE 23/01/2020 : The DeFi Exchange is now live! Open your app or download it here.
What’s the big deal with DeFi?
Decentralized Finance (DeFi) is an emerging yet incredibly fast growing ecosystem. As an industry, it’s locked market value has already reached over half a billion $USD – and growing – according to DeFi pulse.
We want the Eidoo wallet and platform to be a portal to this exciting DeFi world. We have already begun giving you access to this evolving ecosystem through our latest Compound integration.
We’ll soon introduce the DeFi Exchange, a dedicated feature of the app where you can buy, sell and track DeFi tokens. From here you can easily visualize and manage your entire portfolio.
Eidoo gives anyone simplified access to these new tokens, so you have the power of DeFi at your fingertips.
What can I do in the DeFi Exchange?
You can buy, sell and interact with all kinds of DeFi platforms and their tokens. You can also use our on-ramp tools, like the Eidoo wire transfer, to jump from CeFi to DeFi in seconds.
Get an overview of all your portfolio assets so you can track your performance, with the option to easily buy and sell anytime you like. This will function similarly to a DeFi dashboard, giving you a snapshot of your financial position.
It will also be the best place to find new DeFi opportunities as they are added to the exchange. You’ll be able to quickly see the value these different platforms offer, with easy and instant access, directly within our app!
For example, discover various lending platforms, such as Compound and Fulcrum, comparing them to select the best rates.
If you’re just starting out, you can simply explore each individual platform to learn more. Press on the “i” for information and find linked resources to continue your DeFi education.
The first DeFi platforms to be integrated are Compound, Fulcrum (live this Monday!) and TokenSets. We will constantly be adding more platforms, so watch this space.
Compound is a lending protocol. It allows you to lend your tokens to others in the blockchain community and earn interest in the process. Interest rates are based on supply and demand algorithms. Coins or tokens have their own cToken version, such as cDAI for DAI, which you’ll receive in exchange when you supply that asset to the protocol. cTokens simply represent your loaned asset which is earning interest!
So just by owning cTokens, your interest will accumulate automatically through Compound’s exchange rate. You can lend for as little or long as you’d like – even as short as one block!
Read more about how to make the most of this Compound feature in our latest blog post!
Fulcrum was one of the first platforms for tokenized lending and margin trading. It enables you to lend assets and earn interest, or enter into short/leveraged positions. Your funds, such as USDC, are put into an asset pool for borrowers to use, and you receive iUSDC in return. Borrowers pay interest into the fund, increasing the size of the fund. When you withdraw your funds, you are entitled to a proportional amount of the interest accrued.
TokenSets offer tokens with built-in and automated asset management strategies. Each Set is a “smart basket” represented by a ERC20 token. You can select from six Sets which execute different investment strategies, optimized and based on how bullish or bearish you are of the crypto market. For example, “BTCETH5050 Set” is a BTC / ETH Equal Weight Set, giving you equal exposure to holding both Ether and Bitcoin (or ~60% of the crypto market cap).
Each Set is fully backed by the crypto asset that it’s managing. For the first time, you can subscribe to a portfolio strategy platform without the need to sign up for a bank, exchange or brokerage account.
What’s the difference between my cryptocurrency and these DeFi tokens?
You may already own cryptocurrency such as BTC or ETH. These coins generally represent value, such as a security, or have a functional utility, such as powering a platform or network.
DeFi tokens have the same seamless transferability and transparency of a cryptocurrency. However, while cryptocurrency is a type of asset, DeFi tokens can be considered financial tools. These special tokens are embedded with some kind of financial logic by their host platform.
For example, iDAI by Fulcrum represents the interest you have earned on your loaned DAI, just as cUSDC by Compound offers the same representation for USDC. These tokens show how much you have loaned plus your accruing interest. Or in the case of TokenSets, your token represents the combined value of the different cryptocurrencies in your basket.
These DeFi tokens are trying to make traditional finance concepts more trustless, decentralized and automated.
Bridging the gap
While most of these DeFi platforms are built on Ethereum, we don’t believe these DeFi tools and tokens should be restricted to a singular blockchain. We want their impact and value to spread to other chains as well.
There are initiatives and projects already simplify composability so that other blockchains can benefit from these DeFi tools and tokens. Read about pTokens here.
If you’d like to learn more about the world of DeFi or have any questions about our offered platforms, join our Telegram group.