How to Invest in DeFi with Trustee Wallet


How to make money with DeFi SIMPLIFIED! 3 Easy steps…

In 2020, there is an unprecedented excitement in the DeFi market – in August the total amount of funds on the sites exceeded $ 6 billion. During this time, some cryptans not only successfully figured out how this system works, but also received income. According to financial analysts, the market’s potential has not yet begun to unfold; many compare its current state with the start of the ICO boom in 2017.. 

The Trustee Wallet team has already covered the topic in detail, what is DeFi, now it’s time to talk about how you can make money on the DeFi market and what tools you need to do this.

Ways to interact with DeFi projects

  1. Investing in DeFi project tokens;
  2. Depositing funds through project sites (deposit) / obtaining loans.

I. Investment in tokens of DeFi projects

Many DeFi projects issue their own tokens:  MakerDao – MKR, Synthetix – SNX, Kyber Network- KNC, Compound Finance – COMP.

The issue of own tokens has several goals: 

  • minimizing the risks of the main coin (such as the Dai stablecoin in the MakerDao project) 
  • creation of a community of holders for making decisions and innovations on the platform
  • attracting new users and interest in the site.

Along with intangible rights, token holders  DeFi projects have the potential to generate significant income as a result of their future price increases. Just imagine: in August 2020, the token of the MakerDao platform is MKR  increased in price by 54% compared to May of this year. 

– Impressive isn’t it?! 

Business model earnings from the acquisition of tokens is that the investor buys them for storage with the expectation of an increase in their price. You can purchase the most popular DeFi project tokens in a few clicks using the Trustee Wallet mobile service, and you can safely store them right there.. 

As of August 2020, the service supports buy / sell DAI for Ukrainian hryvnia (UAH), token exchange MakerDAO, KyberNetwork and Bancor, as well as storing a number of other DeFi tokens Compound, Balancer, AAVE EthLend.

II. Depositing funds through project sites (deposit) / obtaining loans

Business modelinvesting in DeFi is basically what the user (investor) contributes to  platform for their crypto assets at interest and for a certain period (deposit). The system also works in the opposite direction: a user can get a loan in certain assets, leaving a collateral in cryptocurrency. 

Specific conditions for investing / obtaining loans, interest rates, terms, etc. are spelled out in the smart contracts of each of the projects. They are usually public and can be verified by users..

The most famous platform in this area is the Compound project, which provides the highest percentage of deposits in stablecoins. To deposit / receive assets from the DeFi site, just go to the project website or download the application is not enough. 

Smart contracts of most DeFi projects run on the Ethereum blockchain, and the Metamask plugin is the most convenient way to access these smart contracts. It can be seen as a gateway for transferring assets to smart contracts for DeFi projects..    

Metamask is an application that is installed in the Google Chrome browser to transfer Ethereum (ETH) or ERC 20 tokens to the Ethereum blockchain network.  That is, in order to deposit crypto assets into the project’s DeFi smart contract, you must first add them to the Metamask balance – we will consider this process below.. 

DeFi Tools and Steps

Regardless of the way you choose to make a profit, it will be most convenient to use the Trustee Wallet application. As mentioned above, it can easily invest in Defi project tokens through an exchange, and it can also be easily synchronized with the Metamask wallet. Thus, Trustee is a gateway between the regular fiat market and the decentralized one.. 

Synchronizing Trustee Wallet with Metamask 

To get started, you first need to sync your Trustee assets with your Metamask wallet. Thus, buying or exchanging cryptoassets in Trustee Wallet, they will automatically be displayed in Metamask, which will significantly speed up work with any DeFi projects.. 

For this you need:  

  • Install app Metamask to your browser;
  • In the application, click «Import using passphrase».
  • Please note: if you have  Metamask is already installed, then first click «exit», and then «Import using passphrase».  
  • We enter our seed phrase from the Trustee Wallet service (a sequence of 12 words, which is your private key) and come up with a password for quick access to Metamask through a browser.
How to Invest in DeFi with Trustee Wallet

Done! Metamask is now synchronized with Trustee Wallet and all assets that are on the Trustee Wallet balance can be used in Metamask  to participate in DeFi projects. Now you can easily invest or get loans. 

Making a deposit on the DeFi platform

Let’s imagine that you decide to transfer your fiat funds to DAI or USDT cryptocurrency and at the same time create a deposit through the DeFi platform. Thus, you give your funds to another user on credit, which he undertakes to return within a certain period of time, with an agreed percentage.

Let’s show how to make such a deposit using the example of the site.  Compound: 

  • We go to the site Compound, in the upper right corner we see the button «APP», clicking on it and connecting the Metamask wallet to the Compound personal account;
  • The account has all the information about our deposits, as well as interest rates on deposits in different cryptocurrencies. As you can see in the picture, on the left are interest rates for deposits, and on the right for loans (loans). It also shows the funds that we have on the balance of the wallet;
  • To create a deposit, select the cryptocurrency in the left column (Supply Market), on the basis of which we create a deposit – in our case, USDT;
  • We indicate the amount of the deposit in USDT and confirm the creation of a smart contract with the corresponding transaction;
  • As a result, we get the created deposit, information about which is displayed on the main page of the cabinet;
  • Also, a successful procedure for creating a deposit will be the deduction of your funds from the address balance and crediting cToken instead.’and. In our case, instead of USDT, cUSDT came, this will be visible both in the Metamask wallet and in the Trustee Wallet.

When users submit assets, they receive a cToken from the Compound in return. cTokens are ERC20 tokens that can be exchanged for their underlying assets at any time. As interest accrues on the assets provided, cTokens are redeemed at an exchange rate (relative to the underlying asset) that continually increases over time depending on the interest rate received on the underlying asset.

Receiving loans in tokens or cryptocurrencies is similar, but the Borrow Markets column is used.

This principle can be used with other DeFi sites. The interface may be different, but the logic and procedure are the same. Since the Trustee and Metamask wallets are already synced, you can invest / receive loans from any DeFi platform using assets that are already  are in your Trustee wallet.

It is worth noting that on different DeFi sites, the interest rates for deposits and loans differ, and the list of available assets also differs. The most convenient way to track interest rates on assets is through the service LoanScan, it always contains up-to-date information.

In custody

So, investing in any DeFi projects, creating deposits or receiving loans is very simple: for this you just need to install the Trustee Wallet and complete the above steps.

Please note that we do not give investment advice, and the disposal of assets is solely your prerogative. Invest wisely and use Trustee! 

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