Decentralized Finance (DeFi) is the hottest topic in crypto right now. We’re going to have a quick look at what DeFi is, why it’s getting so popular and then we’ll show you how you can use DeFi with Trust Wallet.
What is DeFi?
DeFi, or decentralized finance, is a blanket term used to refer to financial services that are built using distributed ledger technology. Perhaps the most popular DeFi products at the moment are decentralized lending protocols that enable holders to earn interest on their crypto, or borrowers to come in and secure loans, but there are plenty of other examples like decentralized exchanges, wallets, swap services and more.
Why is DeFi so popular?
DeFi boasts the same values as cryptocurrency - it’s open to everyone, verification isn’t required and there are no middlemen involved. That’s why people are so enthusiastic about it. DeFi offers the opportunity for unbanked people to access financial services.
The growth of DeFi has been very fast, and reminds crypto veterans of 2017 price action. DeFi on paper is certainly interesting. It appears to provide a lot of value. However, many believe that the rise of DeFi is being driven more by speculation than adoption.
It will be interesting to see the development of DeFi over the next few years. Binance Research has an excellent in-depth report about the state of DeFi.
How you can use DeFi with Trust Wallet
Trust Wallet actually has a number of products integrated that are part of the DeFi ecosystem. For example, you can swap assets within your app with Kyber Swap and BinanceDex and you can even use the advanced exchange functionalities of BinanceDEX too.
Since Trust Wallet is a decentralized wallet, by holding your cryptocurrency in Trust Wallet you are taking custody of your digital assets. This is another form of DeFi because you are acting as your own bank.
DeFi with the Dapp browser
The Android version of Trust Wallet has a built in Dapp browser, which gives you full access into the DeFi world. You can visit DeFi websites and interact with your Trust Wallet balance without leaving the app.
For example, here are some popular DeFi Dapps that are frequently used within Trust Wallet:
- Aave - a lending protocol
- Compound - another lending protocol
- 1inch - token swap aggregator
- Sablier - real time salary payments
DeFi with Wallet Connect
WalletConnect is an open protocol for connecting Dapps to mobile wallets using end-to-end encryption by scanning a QR code. It enables a user to use Trust Wallet to connect to DApps and carry out transactions securely without revealing any secret information.
Using Wallet Connect you can connect your Trust Wallet securely to any DeFi application that has integrated Wallet Connect. Here’s a tutorial on how to do so.