DeFI Diaries #4- How to use COMPOUND on Exodus Wallet!

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Written by

Crypto Enthusiast

3 years ago

In community: Crypto Mindset(9c1c)

This post will be a continuation in my series called “DeFI Diaries” where I will be reviewing the popular options in DeFI. I already wrote about AAVE, TrustSwap and COMPOUND, in case you missed those posts you can access them on the links below:

AAVE - https://www.publish0x.com/crypto-projects-sams-reviews/defi-diaries1-aave-why-is-it-getting-so-popular-xnlydve

COMPUND - https://www.publish0x.com/crypto-projects-sams-reviews/defi-diaries2-compound-finance-what-makes-it-so-special-xvrdzdp

TrustSwap - https://www.publish0x.com/crypto-projects-sams-reviews/defi-diaries3-trustswap-new-kid-on-the-defi-block-xllxkzk

In this post I will be covering how you can use COMPUND directly on Exodus wallet through their built-in app.

What’s so Special about the COMPOUND app on Exodus Wallet?

Currently if you want to use any of the popular DeFI platforms like AAVE, MAKER, COMPOUND etc there are many prerequisites to be met before you get going. You need to have a Metamask configured. Purchase some crypto for lending like DAI, USDC, USDT, BAT. Purchase some ETH to facilitate all the transactions. If you are planning to lend a large amount then you need to get a hardware wallet like Ledger or Trezor and then connect it to your Metamask. After all this is in place comes the most critical part that is to educate yourself about the different DeFI options their Pros and Cons and the risks involved. Once you weigh the rewards against the risks involved you go ahead and start using the DeFI platforms of your choice.

For someone who has been around in crypto space for sometime these steps might seem straightforward and easy. However imagine how daunting and confusing it can be for someone who is very new to crypto. I think this COMPUND app integration by Exodus is a great initiative by Exodus to introduce crypto newbies to the concept of DeFI without getting involved in the complexities. It can be a stepping stone for the newcomers to familiarize themselves with DeFI while they learn the ropes of Metamask, Ledger, Crypto Lending, ETH processing fee involved and are ready to start using the DeFI platforms directly.

This is also a matter of convenience for those who just want to load up their DAI on a wallet and start earning interest without going the Metamask way. The way Metamask transactions keep getting slower with each day and the risk of having crypto on a web plugin are additional reasons.

Is this Beneficial for Advanced Crypto Users?

This my friends is a big NO in my opinion. While I admit the COMP app on Exodus is very smooth and intuitive to use I have decided not to use any more as for some unfathomable reason they have decided to not share the COMP token rewards with the wallet holders.

When you go to the COMPOUND Finance site and lend out some DAI directly there you keep earning COMP tokens together with the DAI interest you get. Considering you get about 3% DAI the extra COMP tokens you get rewarded are generally worth more than the DAI you get. Another benefit of getting the COMP token is that you get a voting power in all future change recommendations on COMPOUND.

I find this very strange because for all crypto lent on COMPUND the COMP tokens are immediately generated. This basically means that Exodus is taking out themselves the COMP tokens generated by DAI of their wallet holders. I think this is not very fair as this is an exorbitant fee to pay for the convenience of lending DAI directly from your wallet.

I hope in the future Exodus decides to share a part of COMP earnings with the wallet holders and also includes other tokens which can be lent on COMPUND.

Do let me know in the comments if there is any specific DeFI platform you would want me to try out.

In the video below you can see how the COMP app on Exodus works.