Decentralised Finance or DeFi is an umbrella term used for a wide range of innovative crypto offerings that are touted to disrupt the traditional financial industry. DeFi eliminates the need for middlemen as the transactions are managed and executed using smart contracts. Smart contracts are computer codes that have certain predefined logic embedded in them. The transactions are executed automatically once those conditions are met.
There are many use cases of DeFi ranging from yield farming, and open lending platforms to staking and decentralised exchanges (DEXs). DeFi offers a range of innovative ways to make money, even offering higher interest rates for lending in comparison to traditional banks with fewer barriers to entry.
Why is a DeFi wallet needed?
To conduct any DeFi activity, a DeFi wallet is essential as it is used to own, manage, and transfer the user’s assets. With a DeFi wallet, users remain in control of their funds at all times as they are the access points to their DeFi wallets, and maintain complete ownership.
How to choose a DeFi Wallet?
There exists a plethora of DeFi wallets in the market today for an individual to choose from. But, since these DeFi wallets are a gateway to your crypto assets, you must carefully examine them before deciding on a particular wallet in order to safeguard your assets.
Availability of assets
One of the key considerations while choosing a DeFi wallet is to look at the range of available assets. You could be looking to invest in one of your favourite tokens and it is not necessary that all the wallets could allow you to do that. Also, considering what types of products you would like to access is an important factor as some wallet providers offer access to yield farming and staking, while others may not. Hence, the availability of an asset of your choice is an important aspect to consider while choosing a DeFi wallet.
Security
Blockchain technology is constantly evolving and upgrading. The security of your funds is an important element when choosing a wallet provider. Hacks and cybersecurity threats are common in the crypto world and it is important to consider the history of the wallet provider in terms of user security. One must examine the provider’s security measures and whether they are adequate or not, the reputation of the company behind the development, and the number of users of the wallet, are a few of the aspects to consider while decision-making.
Also Read: How to keep your crypto safe with self custody?
User-friendly UX
One of the reasons for the low adoption of the DeFi industry is the non-user-friendly interface of most of the DeFi platforms. People often do not understand how to use them and as a result, refrain from availing DeFi services. Thus, considering a user-friendly wallet that is easy to navigate and access is equally important while making your decision on choosing a wallet.
Integration with other DeFi wallets
At times you might want to access different assets across chains and protocols. It is important that your chosen wallet offers seamless integration so that you can easily trade your assets between different DEXs. Most of the wallets do not provide multi-chain and cross-chain interaction so one must choose a wallet accordingly if they are seeking higher returns across protocols.
Okto: your one-stop solution to a DeFi wallet
While there are many DeFi wallets to choose from available in the market today, most of the wallets do not provide all the above-mentioned features in a single wallet. However, Okto is one such wallet that integrates all the above features within a single mobile app. Okto is different from the other wallets as the interface has been designed to provide a seamless customer experience for easy access even if you haven’t used DeFi before.
What is unique about Okto is that it is keyless, which means that it is abandoning the need to keep seed phrases while providing extra security layers to safeguard your funds, powered by Multi-Party Computation (MPC) technology. It also provides assisted recovery where even if you lose your private keys, you can recover your funds easily by following the steps in the mobile app while maintaining user control of funds at all times. Okto is also truly multichain, providing interchain operability with multichain and cross-chain access, with access to thousands of tokens from a single wallet.
