We’re excited to announce the launch of DeFi Earn in the Crypto.com DeFi Wallet App! You can now grow your crypto assets on the Crypto.com DeFi Wallet App using our new decentralised finance offering, and earn passive income with a few simple steps.
To start, you can access the feature via the ‘Earn’ tab on app version 1.5.0 or above, and start accruing interest instantly upon depositing tokens and receiving on-chain confirmation.
There is no minimum term, and you can withdraw your deposit with the accrued interest at any time. Crypto.com charges a 0.5% service fee on the corresponding earnings for each withdrawal.
Crypto.com DeFi Wallet is a decentralized (non-custodial) wallet where you’re the one and only custody of your wallet and crypto assets. Crypto.com remains as a facilitator of the deposit & withdrawal process.
How does DeFi Earn work and how am I actually earning?
DeFi Earn demystifies decentralised finance and allows you to deposit your crypto assets to DeFi protocols through native in-app integration. You are able to receive the best return because your tokens are deposited to the integrated protocol with the highest APY at the time of the deposit.
At this stage, our integration with the Compound Lending protocol gives you easy access to grow nine crypto assets. We’re working hard to integrate more DeFi protocols to help you grow your digital assets easily.
What is Compound Lending?
Compound is a decentralized on-chain money market and lending platform, establishing pools of assets with interest rates algorithmically derived from the assets’ supply and demand.
The main value proposition for Compound is it allows users to earn a yield on their crypto assets without having to custody them with a third party.
With DeFi Earn integration, we handle the deposit and withdrawal process with Compound Lending natively on the DeFi Wallet app, hence you don’t have to worry about dealing with smart contract calls and we simplify the concept of cTokens and display the accrued interest you’re earning overtime -
When your tokens are deposited to the Compound Lending protocol via DeFi Earn, you are transferring them to Compound’s smart contract. In exchange, you get the corresponding cTokens which represent the claim to your lent assets.
Interest isn't distributed but by simply holding cTokens, you'll earn interest as cTokens accumulate interest through their exchange rate — over time, each cToken becomes convertible into an increasing amount of its underlying asset, even while the number of cTokens in your wallet stays the same. Hence, we display an extra warning when you’re trying to send your cTokens to ensure you understand the implication of sending away your claim to lent assets + the accrued interest.
When you decide to withdraw, you are essentially sending cTokens to Compound to redeem your deposited assets along with the accrued interest based on the cToken <> underlying token exchange rate.
To learn more about Compound Lending, you may view here for our in-house research article on Compound.
Read on to learn about how to deposit, view earnings, withdraw via DeFi Earn - Compound Lending.
How do I deposit my crypto assets to DeFi Earn - Compound Lending?
- Tap [Earn] on the bottom navigation of your DeFi Wallet app
- Tap [Start Earning] to see the list of tokens supported for earning
- Select your preferred token and enter the deposit amount to see the projected annual earning based on the latest APY%
- Review and confirm the deposit by tapping [Confirm Deposit] *
- Authorize the deposit request with your passcode (and 2FA if enabled)
- Wait for the on-chain confirmation of your deposit request
- Once confirmed, you will see the refreshed total assets amount on your DeFi Earn screen
*Note: Depositing crypto assets to Compound Lending involves calling the ETH smart contract which requires ETH as network fees, hence the estimated network fee will be higher than normal transfers. Please ensure you have sufficient ETH in your wallet before proceeding.
On the DeFi Earn home screen, you will also be able to see the estimated APY % by tokens. The tokens you deposit into DeFi Earn will be linked to one protocol for earning interest at the time of deposit. Your deposited asset will start accruing interest once the deposit is confirmed on-chain.
How do I view my earnings or deposited assets via DeFi Earn - Compound Lending?
Simply navigate to the DeFi Earn, by default we will show your total DeFi Earn assets in fiat equivalence.
- To view your accrued interest, tap on “Interest Amount” to switch to view your assets in interest amount.
- To view your DeFi Earn assets in crypto amount, tap on “Total Crypto Amount”
For a more granular breakdown, you can tap onto a specific token and you will be able to see the latest APY %, total deposited asset amount, and accrued interest in crypto amount.
How do I withdraw my crypto assets from DeFi Earn - Compound Lending?
There is no lockup period for the deposit and you can withdraw your crypto assets from DeFi Earn at any time. Here are the steps to withdraw your crypto assets from DeFi Earn:
Withdrawal via DeFi Earn tab
- From home screen, navigate to the DeFi Earn tab at the bottom
- On DeFi Earn screen, select the token you would like to withdraw from the “Assets” section
- Tap onto the “Withdraw” button on the DeFi Earn Details screen
Withdrawal via wallet balance
- From home screen, tap onto “DeFi Earn Assets”
- Select the token on the assets screen
- You will arrive at your wallet balance screen, tap “View Earnings”
- Tap onto the “Withdraw” button on the DeFi Earn Details screen
After confirming the withdrawal, you’ll see the pending status on both your home screen and the DeFi Earn screen.
How is my DeFi Earn interest and service fee calculated for Compound Lending?
To help you better understand each of the steps from depositing to withdrawing from DeFi Earn, here’s a sample:
Day 1: Deposit into DeFi Earn
- You deposit 100 DAI
- In return, you get 200 cDAI based on the exchange rate
Day 10: Check earnings
- Based on the exchange rate on that day, the 200 cDAI you have are now worth 102 DAI
- In total, you have accrued interest 2 DAI
Say you decide that you want to withdraw your crypto assets from DeFi Earn on Day 10:
Withdraw all earnings
- You input the withdraw amount, i.e. 102 DAI
- Upon confirmation, we transfer the underlying 200 cDAI to Compound in order to withdraw the 102 DAI you have requested
- 0.5% of your corresponding earnings for the withdrawal is charged as a service fee, in this case, 0.01 DAI is charged
Withdraw partial earnings
- You input the withdraw amount, i.e. 50 DAI
- Upon confirmation, we transfer the underlying 98 cDAI (based on the exchange rate on that day) to Compound in order to withdraw the 50 DAI you have requested
- 0.5% of your corresponding earnings for the withdrawal is charged as service fee, in this case, 0.0049 DAI is charged
How do I receive COMP for using Compound Lending?
You automatically accumulate COMP by depositing to Compound. Once you have earned over 0.001 COMP, it will be distributed to your wallet the next time you make a deposit or withdrawal with Compound. The amount of COMP you will earn each day is proportional to how much is invested by you and everyone else using the protocol. View here to learn more about COMP distribution.