Introduction

ZenGo is developing beyond the essential characteristics of a cryptocurrency wallet — allowing you to hold, transfer and accept crypto assets.

How Does The App Work?

You can presently place aside a few of your crypto assets to gain interest.

In other terms, ZenGo presently additionally serves as a savings account.

The company has associated with two DeFi designs for the latest feature.

DeFi indicates “decentralized finance,” and it has been a sizzling trend in the cryptocurrency area.

DeFi designs are the blockchain equivalent of conventional fiscal products.

For example, you can loan and acquire money, finance in borrowed assets and more.

Although let’s get back to ZenGo.

When you own crypto assets in your ZenGo wallet, you can instantly open the savings tab, choose an asset, like Dai, and pick what percentage of your holdings you desire to keep aside.

Following that, all you need to do is wait. You get a summary of your savings “accounts” at any point.

This way, you can view your whole acquired interests.

Interests are reinvested on its own over time.

You can transfer your money from the DeFi designs back to your wallet whenever you require.

Other Companies Associated

Behind the picture, ZenGo uses the Compound custom, a lending eFi project.

It operates a little like LendingClub, only on the blockchain.

A few users transfer money to Compound to provide to liquidity pools. Different users acquire money from that pool.

Interest prices go up and down based on supply and demand.

That’s how? you presently receive more interests when you add DAI or USD Coin in Compound. But that can vary over time.

ZenGo additionally uses Figment in line to stake Tezos. This point, it is not a lending marketplace.

When you secure some money in a staking scheme, it indicates that you help the services of a particular blockchain.

Some blockchains back staking as they want to be based on proof-of-stake.

As the end-user, it seems like a savings account whether you depend on Compound or Figment.

There are additional wallet apps that allow you to access DeFi projects, like Coinbase Wallet and Argent.

However, ZenGo believes they’re yet too complex for normal users.

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Conclusion

ZenGo is evolving beyond being just a cryptocurrency wallet by introducing a feature that allows users to save their crypto assets and earn interest. Partnering with DeFi platforms like Compound and Figment, ZenGo enables users to participate in decentralized finance with ease. This move makes ZenGo not only a wallet for storing and transferring crypto but also a simple and accessible way to earn interest on assets like Dai or USD Coin. It aims to simplify the DeFi experience for everyday users who may find other platforms complex. For more updates and the latest tech news, keep reading iTMunch.

FAQs

1. What is ZenGo’s new feature?
ZenGo now allows users to save crypto assets and earn interest, functioning like a savings account for cryptocurrencies.

2. How does the interest feature work?
Users can choose an asset like Dai and set aside a portion of their holdings. The interest earned is reinvested automatically, and users can check their earnings at any time.

3. What are DeFi designs?
DeFi stands for decentralized finance, which includes blockchain-based financial products like loans and savings accounts, similar to traditional financial services but without centralized control.

4. What are the companies ZenGo is working with?
ZenGo has partnered with Compound, a lending DeFi project, and Figment for staking Tezos, to provide interest-earning opportunities for its users.

5. How does ZenGo compare to other wallet apps?
ZenGo simplifies the DeFi experience, which is typically complex on other platforms like Coinbase Wallet and Argent, making it easier for everyday users to engage with decentralized finance.

6. Can I transfer my money back to my wallet?
Yes, you can transfer your assets from the DeFi platforms back to your ZenGo wallet whenever you need to.