Following the launch of an intuitive onboarding app for both iOS and Android users, Dharma continues to lead the charge in DeFi adoption by allowing users to seamlessly convert USD to Dai or USDC in a quick, free manner.
Many of DeFi biggest advocates were quite enthusiastic about the news, taking to Twitter to share their excitement.
Next steps for @Dharma_HQ
– Pay at checkout via Apple/Google Pay
– Account-linked debit cards
— DavidHoffman.eth (@TrustlessState) February 22, 2020
We keep shipping at @Dharma_HQ.
You can now go straight from your Bank Account, to earning 6.8% interest in our app with zero fees.
— Matthew Vernon (@dApp_boi) February 22, 2020
Why Should I Care?
For those unfamiliar with Dharma, the protocol leverages Compound smart contracts to offer an annualized return on assets lent through the platform.
Along with the introduction of dTokens – Dharma’s version of cTokens – 2020 has brought about an exciting couple months for the San-Francisco based company.
When it comes to introducing new users to the power of DeFi, Dharma very well may serve as the quickest way to help non-technical users see the advantage of lending protocols.
With a quick download and a few quick steps, users can convert fiat to an enticing interest-earning asset, all without having to buy Bitcoin, Ether or any other currency to tap into stablecoin-based savings.
Seeing as Dharma is focused on stablecoins, there is virtually no risk of price volatility, meaning new users can rest assured there’s much to gain, and little to be lost.
For reference, Dharma-based lending currently offers an average of between 5-7% APR at the time of writing – a rate which is far more attractive than traditional savings which average at around 1% APR or less.
Dharma Answers Back
For those who have been keeping up with Dharma, many were sceptical when the company announced dTokens would be the same as cTokens with the exception of a 10% service fee.
— ₿en Sparango (@bennybitcoins) February 6, 2020
As many wondered why anyone would choose to use Dharma over Compound, it’s becoming quite clear how this should pan out.
From a high level, Dharma offers an intuitive onramp that is quick and efficient, meaning non-technical users can access lending opportunities in a fraction of the time it would take to utilize Compound through traditional onramps like Coinbase.
We can start to see the evolution of a sophisticated vs passive audience in which more experienced traders can enjoy better margins thanks to their ability to seamlessly navigate the larger DeFi ecosystem.
On the flip side, products like Dharma allow users to benefit from DeFi without ever having touched Ethereum or cryptocurrencies through a friendly mobile experience they are familiar with.
What To Expect
Moving forward, we expect Dharma to slowly wind down the no-fee window.
Many have speculated that Dharma is choosing to subsidize the Wyre-based onboarding fee in an attempt to garner more attention from a mainstream audience.
If one thing is for sure, creating a mobile onboarding solution which charges no fees and immediately allows users to earn an attractive APR is quite fascinating.
In the coming months, we expect to see improvements to the cash-out process, quickly allowing users to take their interest and deposit it back into fiat currencies in a seamless fashion.
Similarly, we wouldn’t be surprised to see payment partnerships to allow users to spend their Dai without having to cash back out to fiat.
In the meantime, we encourage you to stay up on all things Dharma via their official Twitter.
Eager to get started? Visit this link.
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.