Great news! Arbitrary Ethereum transactions are now enabled in our wallet through the WalletConnect protocol. WalletConnect allows you to open DApps (decentralized applications) on Ethereum while keeping your private keys secure. In part 1 of our tutorial, we will briefly go over some info about WalletConnect and DeFi Apps, and also how to swap and invest tokens using these protocols.
What is WalletConnect?
WalletConnect is an open protocol for connecting desktop DApps to mobile wallets using end-to-end encryption by scanning a QR code. The protocol is designed for Ethereum, however, it can also be customized to support other blockchain transactions. In addition to Ethereum, we also use WalletConnect to interact with Binance Dex.
How to Open WalletConnect in CoolWallet S
Please follow the steps below on how to enable WalletConnect in our mobile app:
Step 1: Go into the Trade tab
Step 2: Tap on WalletConnect
Step 3: Scan the QR code provided by the DApp
Step 4: Select an Ethereum address to connect to the DApp
Step 5: Tap Done.
What is DeFi?
DeFi is short for decentralized finance. It provides the same financial services as traditional banking without the need for a central authority or an intermediary with the help of smart contracts. DeFi platforms allow you to swap, invest, lend and borrow tokens through various apps. Through the use of smart contracts and heavy auditing, these platforms are considered to be very secure and now hold hundreds of millions worth of ETH combined on the Ethereum network.
Decentralized Exchange apps (DEX) are perhaps the most simple among all of the DeFi applications. The two apps with the most heavily audited contracts are Uniswap and KyberSwap, both of which support WalletConnect. This means that all CoolWallet S users can use these DApps as an alternative exchange method for their crypto assets.
Uniswap is currently the biggest DEX on Ethereum with a total pool of $26 million in ETH. With Uniswap, you can swap tokens between different addresses and invest directly into the pool. Consensys did an article about the auditing on Uniswap if you were curious about the security of the platform.
How to Connect Uniswap through WalletConnect
Please follow the steps below to connect Uniswap through WalletConnect:
Step 1: Click Connect to a Wallet and choose Wallet Connect. A QR code should appear.
Step 2: Scan the QR code with your smartphone and your address should appear.
Step 3: If everything is correct, you may close the window.
How to Swap Tokens with Uniswap
Please follow the steps below to swap tokens with Uniswap:
Step 1: In the Swap tab, you can input the amount of ETH or token you want to swap. If you are exchanging an ERC or if this is your first time using Uniswap, please continue on to step 2.
Step 2: Click Please unlock token to continue at the bottom to approve the Uniswap contract.
Step 3: After unlocking, a Deal Summary should appear on your smartphone. If everything is correct, you can tap Confirm.
Step 4: Turn on the CoolWallet S by pressing the button and ‘SMART’ should be displayed on the screen. This indicates that it is utilizing a smart contract transaction rather than a simple transfer.
Step 5: Double-click the button on the card to approve the singing.
Step 6: You should now be able to click the Swap button to complete the transaction.
Step 7: After swapping, you can click the dots at the top-right corner to look at the status of all transactions.
How to Invest in Uniswap
Uniswap is designed to allow any user to improve market liquidity by investing their token along with some ETH into the pool and also get a portion of a transaction fee in return. Pool APR rankings can be looked up here for reference. To learn more about investing in Uniswap, this post may be helpful. Please follow the steps below to invest in Uniswap. Please also make sure that Uniswap in enabled before moving any funds.
Step 1: In the Pool tab, select the pool you would like to invest in. Your deposit will be valued in ETH and ERC20 tokens.
Step 2: Click Add Liquidity
Step 3: If you would like to withdraw your tokens/ETH along with any earned fees, click the arrow next to Add Liquidity and select Remove Liquidity.
In addition to Uniswap, another contract we recommend is KyberSwap. It is backed by the Kyber Network, an open liquidity protocol that is behind many DeFi projects. The Kyber Network has around $3.5 million of ETH in its pool.
How to Connect KyberSwap through WalletConnect
Please follow the steps below to connect KyberSwap through WalletConnect:
Step 1: Click on Connect other wallet and select Wallet Connect.
Step 2: Once connected, your available balance will appear under From.
Step 3: To swap your tokens, enter the amount you would like to swap and click Swap Now when you’re ready.
If you plan on swapping a significant amount of tokens, we recommend using 1inch.exchange. This DEX exchange is a smart contact that combines various decentralized exchange contracts, including Uniswap, KyberSwap and many others. It can also help you find the best exchange rates.
Step 1: Click on Connect Wallet in the top-left corner
Step 2: Click Wallet Connect
Step 3: Once everything is connected, you can now swap your tokens and 1inch.exchange will help you optimize your offer. Here’s an example:
Depending on how much ETH you are swapping, 1inch.exchange will recommend how to divide it up for the best return. In our 100 ETH swap example, 1inch.exchange recommends us to put 33% in Kyber, 14% in 0x, 13% in Bancor and the rest in Uniswap. Savings can also be viewed below. Once everything is confirmed, click SWAP NOW to process the transaction.
Hopefully all that info helps. Part 2 of our WalletConnect tutorial will cover lending and borrowing with DeFi apps so stay tuned!