For those who were keeping tabs on Kyber’s DeFi Hackathon winners, you may recall our article mentioning DeFiZap – a tool to quickly interact with a number of prominent DeFi products such as Maker, Compound, Tokensets, Fulcrum or Synthetix – which ended up taking home the grand prize of $5000 worth of Kyber Network Crystals ($KNC).
Today, we’re excited to share a new upgrade to DeFiZap which offers one token entry into Uniswap liquidity pools.
For those unfamiliar with how Uniswap pools work, liquidity providers must supply an equal amount of ETH and the token in question in order to earn a share of the 0.3% trading fees. Up until now, this meant that a user would have to go out of their way to purchase a secondary token to participate in that pool.
With the introduction of DeFiZap’s Uniswap integration, users can enter into any supported Uniswap pool using one token. DeFiZap takes the token (in this case ETH) and splits it approximately 50/50 (49.5% ETH and 50.5% ERC20 as seen here) into the pool you wish to enter. For more information on how this is done, we recommend checking out DeFiZap’s tutorials.
This effectively allows users to cut the process from 3+ Metamask interactions into 1. End-users simply input how much ETH they wish to supply, and DeFiZap takes care of how many tokens are needed to match.
Furthermore, DeFiZap illustrates that entering with just one token allows investors to keep better track of returns. When you exit the pools, your return will be dominated in one token (ETH) instead of having to worry about calculating your gains on multiple tokens.
Lastly, DeFiZap has integrated ENS capabilities to allow users to send tokens to the one-token Uniswap pool of their choice using human-readable addresses. In practice, users can input an address like “DAIUnipool.DeFiZap.eth”, tweak the gas limit to 1,500,000 and boom! You’re now supplying liquidity to the ETH/DAI Uniswap pool.
What’s the Big Deal?
DeFiZap provides a strong instrument for users of all backgrounds to quickly and easily interact with their favorite DeFi products. The product abstracts the need for users to be thoroughly educated on the interworking of any given protocol through simply sending ETH – something that virtually everyone in the blockchain ecosystem is familiar with.
Similarly, DeFiZap’s efficiency further builds on the growing narrative of composability. DeFiZap currently supports DAI, sETH, MKR and SNX Uniswap pools with the expectation that larger pools will likely be integrated into the product.
⚡️⚡️⚡️⚡️⚡️~1060 ETH⚡️⚡️⚡️⚡️⚡️deployed into DeFi protocols through DeFiZap in the last 24 hours 🤯
Note: when using DeFiZap, you mint & receive the same liquidity tracking tokens as when using Uniswap, Compound, bZx, Synthetix, Tokensets etc. on your own.https://t.co/zCFrqRr0Sq https://t.co/9Y6Q9FmSDG
— Nodar.DeFiZap.eth (@NodarJ) December 11, 2019
Beyond Uniswap, DeFiZap provides easy exposure to 6 of the top DeFi products, all in one dashboard. For those new to DeFi, this serves as a great one-stop shop to see what these different products are capable of.
In the meantime, we recommend staying up to date with DeFiZap on Twitter.
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Cooper is focused on building compelling blockchain products. He currently works as the managing director at Fitzner Blockchain Consulting and is a contributor to DAOs like MetaCartel and Moloch. He is an active member of the Ethereum community and has a strong interest in for-profit businesses such as The Block Crypto and Messari.