Crypto and the Terrible, Horrible, No Good, Very Bad Week
Managing all your DeFi assets can be complicated. Last week we covered the DeFi and Web3 aggregator Zerion, a general-purpose aggregator plugged into many different protocols.
This week our guide will cover another aggregator, one with a more granular focus on DeFi, called DeFi Saver.
What is DeFi Saver?
Similar to Zerion, DeFi Saver is a DeFi aggregator. However, DeFi Saver differentiates itself as more of an asset management tool that offers several advanced services that a general-purpose aggregator such as Zerion does not.
DeFi Saver has been operating live on the Ethereum mainnet since April 2019. One of the first services they launched was Smart Savings. Smart Savings was integrated into three different protocols, Compound, dYdX and Fulcrum. The service allowed a user to conveniently track and compare the yields available across the three protocols and transfer their funds between them in a single transaction, all through one dashboard.
This type of service was very new at the time and abstracted away from the complexities of managing your Collateralised Debt Positions (CDPs) across several different protocols and, as one could imagine, found significant adoption among early DeFi users due to this.
Since 2019 they have processed over 100 000 user transactions and $6 billion in trade volume on the Ethereum mainchain. They have recently made the decision to expand their services onto two Ethereum layer 2 scaling solutions, Arbitrum and Optimism. This decision was made because there are now enough protocols operating on the layer 2's to provide a wide range of services and, secondly, to reduce fees for their end-users.
How Does DeFi Saver Work?
DeFi Saver is a non-custodial asset management tool. This means that they do not store your private keys or seed phrase and therefore cannot access your assets from their side.
Just like Zerion, DeFi Saver acts as a user interface to the world of DeFi. Many existing DeFi projects have complicated or poor UI and affect the experience one has with the technology, and for many, it means that you write it off from the get-go. Their simple solution alleviates many of the problems that people experience when using DeFi, especially those who are new to it.
Where DeFi Saver differentiates itself is through the services it offers. These are all DeFi specific and allow users to leverage the composable nature of Ethereum smart contracts.
According to the team, the core services DeFi Saver offers are:
Managing your debt positions in MakerDAO, Aave, Liquity, Compound, and Reflexer with access to their leveraging and deleveraging options (Boost and Repay), as well as different automated position management options.
Moving your position between different protocols or converting your supplied or borrowed assets using the Loan Shifter.
Earning interest on your stablecoins (DAI, USDC, USDT, mUSD) in their Smart Savings dashboard that provides access to yield earning protocols such as mStable, Yearn and Rari and includes a simple 1-tx option of moving funds between supported protocols.
Creating custom complex transactions made up of actions such as flash loans, asset swaps, and other DeFi protocol interactions using the Recipe Creator.
Swapping any tokens in their seprate Exchange.
Out of all their products, their Recipe Creator may be the most exciting and their most significant differentiator, which we cover further on in the guide. Another handy feature that DeFi Saver has is its simulator option. The simulator allows users to become more accustomed to using the app and explore its various features and strategies without putting financial capital at risk.
Overall, DeFi Saver has created a useful DeFi tool that will lower the barriers to use and encourage further DeFi adoption.
How To Use DeFi Saver
DeFi Saver has focused on providing access and tools for DeFi protocols in the Ethereum ecosystem, specifically on the mainchain. However, they have very recently also gone live on Arbitrum and Optimism, two Ethereum layer 2 scaling solutions to leverage the benefits on offer.
For the purpose of this guide, we will use a MetaMask wallet. This will allow us to interact with both the Ethereum mainchain and the layer 2 projects Arbitrum and Optimism through one wallet. If you do have a personal preference feel free to use whatever Ethereum-compatible wallet you choose.
Step 1: Set Up MetaMask Wallet
In order to interact with Ethereum, you require a wallet. As previously stated, our wallet of choice is MetaMask, but you are free to choose your own. Please find our guide to setting up your own MetaMask wallet here.
Once you have set up and funded the wallet, you can now use DeFi Saver.
Step 2: Visit the DeFi Saver Website
Go to the DeFi Saver Website
Make sure the URL you land on is "https://defisaver.com/"
You should see the below screen:
Step 3: Open App and Connect Wallet
Click Go to App on the top right-hand side of the page
You should now see the DeFi Saver dashboard with a list of the different wallets you connect
Pick your preferred wallet and click Connect
Enter your MetaMask password when prompted
You will now be able to see your DeFi Saver overview:
Step 4: Determine Your Strategy
Now comes the time when you must decide on what type of strategy you want to participate in. DeFi Saver offers a wide variety of DeFi strategies, all through one unified interface. Please always make sure you have done your own research and understand the risks involved with each strategy.
One of DeFi Saver's most exciting capabilities is its ability to move loans between protocols and change your collateral and debt assets, using them where they are needed most.
DeFi Saver also allows you to create "Recipes". These recipes have abstracted the need to code in order to participate in complex smart contract transactions and leverage the "DeFi Legos" we have previously written about. We suggest you play around here to better understand exactly what you can do and get an idea of the power of composable DeFi. Please remember this obviously carries more risk, so an understanding of what you are doing is required; alternatively, you can also explore some of the existing pre-made recipes; however, bear in mind that these still carry risk.
Here is a list of some of the pre-made recipes, so you get an idea of what is possible:
You can click on each to better understand how it works and see some historical data and the yield one could expect to make over a year.
Using these networks is the best way to learn about them. It shows and allows you to understand what blockchain networks are capable of. Each has its own unique advantages, disadvantages and user experiences.
DeFi Saver and the team have significantly reduced some of the complexities that arise when it comes to using DeFi protocols. They have also allowed people to visualise and use the DeFi Legos that we have so often spoken about. As it continues to build on the frontier of DeFi, expand onto new chains, and offer new services, we look forward to seeing what use cases something like DeFi Saver may unlock.
If you have any questions or have trouble using the network, please feel free to reach out and ask us questions. We always look forward to chatting with our readers. Otherwise, please feel free to share this article if you know anyone who is interested in using these networks.
Notable Articles and News Stories This Week:
Powell Calls Fed’s 0.75% Rate Increase ‘Unusually Large,’ Warns of Slowing Economy
The Federal Reserve announced a three-quarters of a percentage point increase in interest rates Wednesday, marking the sharpest rate hike since 1994. Central bankers also predict elevated unemployment rates, prolonged higher prices and a slowdown in economic activity.
Overall economic activity appears to have picked up after edging down in the first quarter, Fed officials wrote in their statement released Wednesday at the end of their two-day policy meeting. Job gains have been robust in recent months, and the unemployment rate has remained low, the statement noted, but Russia’s invasion of Ukraine and ongoing supply chain issues have contributed to persistent inflation.
“Inflation remains well above our longer run goal of 2% over the 12 months ending in April, total PCE prices rose 6.3%, excluding the volatile food and energy categories,” Fed Chair Jerome Powell said during a press conference following the release of the statement.
Read more about the hike here
EU Negotiators Want To Hammer Out Crypto Bill This Month
European Union policymakers held another meeting yesterday in an attempt to reach an agreement on the Markets in Crypto-Assets (MiCA) bill that will shape crypto development in the European common market.
France, which currently holds the EU presidency, aims to close a deal by the end of this month, Bloomberg reported last Friday. MiCA has been an ongoing discussion since the European Commission first presented a proposal to the European Parliament in 2020.
The rise of crypto markets’ relevance in 2021 accelerated this discussion, and France wants to achieve this milestone while they hold the presidency, which ends this month — the Czech Republic will take over the role in July.
After today’s meeting, another “trilogue” — EU’s last mile with members of the Parliament (MEPs), EU’s presidency and European Commission officials — will happen on June 30.
Read more about the bill here
Circle’s New Euro-backed Stablecoin Mimics USDC
Europe is bidding adieu to negative interest rates — and a euro-backed stablecoin is vying to be a prime beneficiary.
Seizing the development in monetary policy, USDC’s issuer, Circle, announced Thursday a new euro-backed stablecoin called EUROC, modeled after the second-largest dollar-pegged stablecoin, which currently has a market cap of $54.4 billion.
The plan is for Euro Coin to be backed 100% by euro-denominated reserves held in Silvergate Bank, regulated in North America, so it is redeemable 1:1 for euros. The reserves will grow based on supply and demand.
“Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce, and broader digital asset markets use-cases. The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure,” Circle’s co-founder and CEO, Jeremy Allaire, wrote in a tweet.
Read more about the new stablecoin here
Whilst we all have the option to look, to seek to understand, it’s often easier not to. Bitcoin, Ethereum and distributed ledger technology are complex systems that require significant due diligence. At Etherbridge, we aim to lower the barriers to understanding this fast-growing digital economy.
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