Built on Compound, the new Dharma enables anyone to earn interest.
|Aug 30||Public post|
DISCLOSURE: This is not investment advice. Please do your own research before investing. I am not affiliated, compensated or in any way associated with featured applications in my posts.
After launching as a peer-to-peer lending protocol in mid-2018, Dharma received lots of feedback from users and most were asking for instant interest returns withdraw-able at anytime. Unfortunately, the order-based, peer-to-peer protocol they’ve built up to that point had too many design constraints to execute their new vision. As a result the Dharma team decided to leverage the Compound Protocol as a foundational layer instead, putting full focus on designing the best user experiences.
You can think of Dharma V2 as an alternative front-end interface for simplifying interactions with Compound’s smart contracts. Seasoned DeFi participants might not find this too valuable as you are able to perform the same tasks directly on Compound’s interface but I believe Dharma is targeting new / casual investors who prefer simple, one-button solutions.
Warning: “The initial version of the product is intermittently custodial — if Dharma were to get hacked or go rogue, your funds could be compromised. Users will be transitioned to the non-custodial, 2-of-2 multi-sig wallet system in the coming weeks by default, but this is the nature of the system today — buyer beware!”
Visit https://beta.dharma.io and log in.
Click Deposit Dai, copy the deposit address, send some Dai and watch the interest pile up .
Even though the process of depositing DAI/USDC to start earning interest is simple, the main hurdle for many new users is purchasing that DAI/USDC to make a a deposit in the first place. Dharma should focus on building seamless fiat-crypto onramps where users simply connect bank accounts and start earning (using Wyre integration perhaps?).