The Status Network set out a goal to bring Ethereum and the world of DeFi to mobile devices. We’re opening access to the incredible world of financial tools for any person to use without relying on banks or third party brokers.
In this series we'll review the most exciting Dapps in DeFi that can be used directly from your smartphone to build a range of financial options into a decentralized portfolio, from high interest savings to sophisticated pooling and token sets.
DeFi mobile empowers individuals by letting them run their own funds--earn, borrow, lend, grow. All on mobile. Free from banks, free from an office, you can manage millions to dozens in assets with your phone.
What is DeFi?
DeFi builders are using decentralized technology to create new, secure financial products with a variety of risk profiles for the broad range of investors across the globe. Participants can lend, borrow, invest, speculate, hedge, make markets, collect trading fees, and more.
The Status Network is excited about DeFi offered through our community curated marketplace dap.ps. The Status App uses dap.ps as the default location to find and use Dapps, including the most exciting DeFi Dapps on Ethereum.
We’ve identified four kinds of DeFi Dapps available right now to begin growing your decentralized portfolio on mobile immediately.
Open Lending Platforms
Any user with a web3 wallet can earn interest through loaning assets directly to borrowers, and borrowers can deposit collateral and borrow assets without a middleman. MakerDao and Compound are the most established players, but many more Dapps are creating their own unique takes on lending platforms this year.
Two major problems that open lending platforms solve that can help millions of people today:
- Low savings rates. Instead of earning ~1% as the best rate from banks, individuals can earn much higher rates on lending dollar denominated assets (stablecoins) such as DAI.
- High fiat volatility. Unstable currencies in places such as Argentina or Zimbabwe lose value with volatile inflation. Through DeFi savings and lending, people from all over the world can hedge against their home country currency and save in stablecoins.
These tools are available right now, in February 2020. Right now people can take their money, move it into DAI stablecoins, and get an 8% return on their money in a savings account.
Decentralized exchanges (DEX) allow people to trade digital assets without entrusting funds to a single exchange platform. The DEX matches traders with the right funding pools so individuals can make swaps.
Uniswap is a liquidity pool builder. Traders can swap coins on Uniswap, but also any person can earn fees by adding token liquidity to Uniswap. You can put your tokens up for Uniswap to use as liquidity pools for traders and earn fees on the trades conducted using your funds.
Investing & Portfolio Management
One benefit of DeFi is the interoperability of dapps to work together--money legos. Different investment products can be combined to create a broad wealth portfolio where fees return to the network and participants rather than to a central entity.
For example, a potential digital wealth portfolio could look like:
- Defi Zap: A digital index fund. Get instant exposure across multiple defi protocols based on return goals.
- TokenSets: Bundled token baskets to capture a variety of risks and returns, with automatic restructuring.
- Uniswap: Add liquidity. Join market making pools to earn fees, or even create new exchanges.
The DeFi revolution is underway. Regular people from across the world have access to financial instruments outside the traditional banking system. These tools have great user experience, and are usable right now without compromises in either individual sovereignty or security.
So what are you waiting for? Start using #DeFi on mobile through the Status App and dap.ps, and grow your financial portfolio with the future of money.
*Disclaimer - This article was written for your entertainment, and the content is for informational purposes only. You should not construe any such information or other material as investment, financial, or other advice. Using decentralized financial tools does not come without risks and using Status is simply a portal to these tools - Status does not mitigate associated risks of said products.