NOTE: Wyre announced on June 16, 2023 that they will cease operations. All users must remove funds by July 14, 2023. New accounts will no longer be available. For more information please refer to their blog article: https://blog.sendwyre.com/wyre-operations-update-712a6d084229
In a previous post we highlighted an exciting DeFi project called Compound. Compound allows Ethereum asset holders to earn interest on their ETH, DAI, BAT, ZRX, REP, USDC, and WBTC holdings.
In a world of negligible or even negative interest rates, depositors and investors are looking for alternatives. Some crypto assets are quite compelling in this abnormal financial environment. For example, the Dai market on the Compound protocol is offering suppliers of Dai an interest rate of 4% for their deposits!
We wanted to expose our users to this possibility and enabled native support for all the assets the Compound protocol allows holders to earn interest on. Without having to interact with the Compound app, Edge users can now earn interest on some of their Ethereum assets right from their mobile device!
Below are the steps needed to start earning interest on these assets in Edge:
For our example we’re going to go all the way from US Dollars to cDai. We’ll first buy the Dai stablecoin using a US bank account and then exchange the purchased Dai for the interest bearing cDai. If you don’t have a US bank account, thats ok we have global coverage. Choose the region you have financial roots in and we can onboard you into crypto.
- First we need to add Dai and cDai to our Ethereum Wallet. Go to the bottom of your screen and tap on add token.
2. Next, check the boxes for Dai and Compound Dai (cDai) so that Edge can create wallets for those assets. Click “Save” and those wallets will show up under your Ethereum Wallet.
Our US partner, Wyre, enables users with a US bank account to buy Dai directly. To do this you’ll have to set up an account with Wyre which requires users to give up some personal information If you already have Dai or any other asset supported by Compound you can skip to Step 6.
3. To buy Dai with US Dollars start by tapping on the three parallel lines at the top of your wallet screen. The menu should slide out with a list of options. Tap on the “Buy Cryptocurrency” option.
4. Next you’ll be prompted to select your region. In this example we’re going to choose the United States. Then choose the ACH Bank Transfer option because our partner Wyre allows users to purchase Dai using a US bank account.
5. After setting up your account and getting approved by Wyre, select the asset you want to purchase and tap on “Buy”. In this case we’re going to buy Dai. It should take 1-2 days for the Dai to show up in your Dai wallet.
6. After the Dai is in your wallet you can exchange it for the interest bearing cDai. Tap on the “Exchange” icon on the lower right side of your wallet screen. You should see the screen below.
7. Now select your source and receiving wallet. Your source wallet should be your Dai wallet and your destination wallet should be your cDai wallet. When you’ve set that up and typed in the amount you want to swap tap “Next”.
Edge will search for the exchange that can serve the swap request. Usually a few exchanges would compete for a swap but in this case our partner Totle is the only one that can currently service swaps in and out of Compound assets.
8. Check one last time that your swap is as you intended and then slide to confirm!
Now we have an interesting bearing asset in our Edge wallet! We went from having no crypto-assets to converting fiat into Dai and then swapping that Dai for cDAi. All from a mobile device.
Keep in mind the amount of cDai or any other cToken won’t increase. You won’t be accumulating more of these tokens over time but rather the exchange rate of the cDai will increase as the Dai market in Compound accumulates interest. We explain this and more in our post about Compound. We encourage you to check it out if you haven’t already.
If you have any questions or issues don’t hesitate to contact our support team!