Last month we integrated with Compound, giving you even more DeFi tools to play with — without ever having to leave the safety and convenience of the Eidoo platform.
As one of the industry’s leading crypto wallets, we’re not just a place for storing your funds, but making the most out of them too.
Every user is free to lend their funds using the Compound feature – and earn interest in the process!
HODL up – what is Compound?
Compound is a lending protocol intended to power the financial markets & applications of the future.
As a fully decentralized lending platform, it allows you to lend your tokens to others in the blockchain community through smart contracts that automate and manage these loans. This means you won’t have to go through any intermediaries, saving time, hassle and fees. Your funds also remain secure, as they don’t pass through anyone else’s hands and are therefore not exposed to any malicious actors.
You can lend for as little or long as you’d like – even as short as one block!
eidoo: How does it work?
Compound is the ecosystem’s first “liquidity pool”. This means instead of lending your assets directly to other users, you contribute your token supply to the market, which other users can then borrow from.
Interest rates are based on supply and demand algorithms. When there is lots of liquidity, rates are low. When there’s less, interest rates increase to attract more users to lend their crypto to the pool.
Each coin or token has its own cToken version, such as cDAI for DAI, which you’ll receive in exchange when you supply that asset to the protocol. cTokens represent your loaned asset which is earning interest! So just by owning cTokens, your interest will accumulate automatically through Compound’s exchange rate.
Thanks to our latest $DAI integration, you can get your hands on some cDAI, which is currently the most profitable (has the highest interest rate returns) across the cToken series.
As well as seeing your cDAI balance, you can also view your underlying DAI balance (the amount you lent to the liquidity pool), the equivalent balance in fiat, as well as the interest you have earned in real-time, from right inside your wallet.
With other wallets, you’d normally have to use an external DApp browser, or go to the Compound platform itself to check these details. We remove these steps altogether, making your lending experience as intuitive and transparent as possible.
You can withdraw your loaned funds any time you want.
Follow these simple steps to start lending with Eidoo:
- Open the Swap feature in your Eidoo wallet or desktop platform.
- If you haven’t got some already, get some DAI. You can do this by swapping it for ETH (no KYC required) or buy some DAI with fiat money like EUR (KYC required)
- Once you have DAI, swap it for cDAI. This will automatically contribute your DAI to the liquidity pool.
Interest will begin to increase over time, which you can see in your supply balance. You can withdraw your lending balance at any time by swapping your cDAI back into DAI.
For any questions or help on how to use this new feature, head to our Telegram Channel.
Download the Eidoo App now on your device on iOS, Android or Desktop.