In the part 1 of our WalletConnect tutorial, we focused mostly on swapping and investing tokens in DeFi apps such as Uniswap and KyberSwap. In part 2 of our tutorial, we would like to focus on the lending and borrowing of tokens through exchange platforms such as Compound and EasyDAI.
How to Lend with Compound
Lending is a great option for those who prefer not to partake in risky investments but would still like to earn some passive income. With Compound, users can lend tokens to others and earn interest in return. Lending with Compound carries almost no risk and is audited by OpenZeppelin and Trail of Bits. Compound holds around $100 million in ETH and is considered to be very safe. Please follow the steps below to lend with Compound:
Step 1: Click on the Lend tab.
Step 2: Select the token you would like to lend.
Step 3: Enter the amount of token you would like to lend.
After entering the amount of token you would like to lend, the remaining steps are similar to all the other transactions. Once your tokens have been lent out, you may check the Overview page at any time to see the interest you have earned. Keep in mind that the interest rate will fluctuate depending on the amount of users joining or leaving the pool.
How to Borrow from MakerDAO
MakerDAO is a lending platform where you can use ETH or ERC20 tokens as collateral to borrow the DAI/SAI stablecoin. It is currently the largest DeFi, holding around $315 million in ETH. Please follow the steps below to borrow from MakerDAO:
Step 1: Click on the Borrow tab.
Step 2: Enter the amount of DAI you would like to borrow.
Step 3: Click Borrow and then Open to complete the transaction.
How to Upgrade your SAI to DAI
If you are still holding on to SAI (the older version of DAI), a message will appear on the Overall page that will walk you through upgrading it to DAI. If you had previously borrowed SAI from MakerDAO, you may see another migration option to upgrade you through CDP (Collateral Debt Position).
The EasyDAI platform is a great option for users who would only like to earn interest on tokens lent through Compound. Developed by Taiwanese company, Pelith, the EasyDAI smart contract makes lending to Compound more streamlined by first converting ETH into DAI (or USDC) and then lending to Compound all within the same transaction.
How to Connect EasyDAI through WalletConnect
Connecting EasyDAI through WalletConnect is pretty straightforward. Please follow the steps below:
Step 1: Click Login on the top right.
Step 2: Select Login with Wallet Connect.
Step 3: Scan the QR code.
After logging in with WalletConnect, you can see an overview of your balances and interest earned. You can then enter the amount you want to lend and the equivalent DAI/USDC that will be put into the Compound pool will be displayed. Please note that EasyDAI will deduct 0.5% of the funds you put in as a transaction fee.
After your transaction has been completed, your balance will be updated and you will start earning interest. If you would like to withdraw your DAI/USDC, you can click the arrow next to Balance.
There are several other DApps, other than DeFi, that are adopting WalletConnect and you can find a list of them here. Feel free to poke around there for a bit to see what fits your needs. And as always, if you have any suggestions about how we can improve your experience, please let us know! We’d also be happy to help you with any questions you may have.