INSUBCONTINENT EXCLUSIVE:
ZenGo is expanding beyond the basic features of a cryptocurrency wallet —letting you hold, send and receive crypto assets
You can now set aside some of your crypto assets to earn interests
In other words, ZenGo now also acts like a savings account.
The company has partnered with two DeFi projects for the new feature
DeFi means &decentralized finance&, and it has been a hot trend in the cryptocurrency space
DeFi projects are the blockchain equivalent of traditional financial products
For instance, you can lend and borrow money, invest in derivative assets and more.
If you want to learn more about DeFi, here an article I
wrote on the subject:
DeFi aims to bridge the gap between blockchains and financial services
But let come back to ZenGo
When you have crypto assets in your ZenGo wallet, you can now open the savings tab, pick an asset, such as Dai, and select what percentage
of your holdings you want to set aside.
After that, all you have to do is wait
You get an overview of your savings &accounts& at any time
This way, you can see your total earned interests
Interests are automatically reinvested over time
You can move your money from those DeFi projects back to your wallet whenever you want.
Behind the scene, ZenGo uses the Compound
protocol, a lending DeFi project
It works a bit like LendingClub, but on the blockchain
Some users send money to Compound to contribute to liquidity pools
Other users borrow money from that pool.
Interest rates go up and down depending on supply and demand
That why you currently earn more interests when you inject DAI or USD Coin in Compound
But that could change over time.
ZenGo also uses Figment in order to stake Tezos
This time, it isn&t a lending marketplace
When you lock some money in a staking project, it means that you support the operations of a particular blockchain
Few blockchains support staking as they need to be based on proof-of-stake.
For the end user, it looks like a savings account whether you&re
relying on Compound or Figment
There are other wallet apps that let you access DeFi projects, such as Coinbase Wallet and Argent
But ZenGo thinks they&re still too complicated for regular users.
ZenGo wants to become the crypto wallet for the masses
