One of the most interesting opportunities offered by DeFi (Decentralized Finance) that is attracting more and more users and investors is represented by the Lending Protocols, those platforms connected to the DeFi system that allow to obtain passive interest through the loan of cryptocurrency, all managed in a "trustless" way thanks to the transparency of Blockchain and the security that smart contracts guarantee.
In the following tutorial we will see how you can earn interest directly inside the Eidoo wallet, through simple swaps. We will use as an example the Compound protocol (specifically a conversion from stablecoin DAI to cDAI).
Please note: in this example there will be a swap between ETH and DAI, then between DAI and cDAI. If you already have DAI tokens, it's sufficient to make a deposit on Eidoo Wallet and exchange them with cDAI. At the moment the app is compatible only with DAI, but in the future there will be implemented other cTokens that will permit users to gain interests from different assets.
1) From the main menu click on swap, then select the amount of ETH you want to exchange, then click on review swap.
2) Check all the data and input your password to confirm the swap.
3) Once the transaction will be approved by the blockchain, DAI tokens will be available inside your wallet. To start gain interests, it's necessary to swap DAI into Compound's cDAI. From the main menu, click again on swap and select the amount you want to exchange, then click on review swap.
4) Once again, check all the data input your password to confirm the swap.
5) Congratulations! Through cDAI tokens your DAI will mature interests directly inside Eidoo Wallet. No further action is necessary: it's sufficient to keep cDAI tokens inside the wallet. From the main menu and from the dedicated cDAI page, you can check the current yearly interest percentage.
In case you don't want to swap tokens, you can buy DAI directly from Eidoo Wallet through bank transfer. To do it, click buy in the main menu, select Dai Stablecoin from the list of available cryptocurrencies and follow the instructions.
Interest notice: at the moment of the writing of this guide, cDAI interests rate was 7,38%: please note that interests may vary and they are calculated at every mined block. Interests are implicit: the user won't see his cDAI increasing, but he will see increasing just the counter value against DAI.
Example: if I get 100 DAI (100 USD) and I swap them into cDAI, with a 8% yearly interest, next year I will be able to swap 100 cDAI for 108 DAI (108 USD).