How To Create a Dharma Smart Wallet

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janethill73
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In this demonstration, the goal is set you up with a Dharma Smart Wallet. Eliminating the complexities of most crypto-wallets, Dharma does an excellent job in simplifying the onboarding process and offering an easy-to-use on/off ramping mechanism to allow users to deposit & withdraw funds as frequently as they please.

Brief Explanation of the demonstration:
1. Dharma Smart Wallet uses smart contracts to convert your deposited U.S Dollars into a stablecoin known as DAI (which is pegged to the value of the Dollar).
2. Your newly minted DAI is supplied to a protocol known as Compound Finance, and converted into an interest-bearing asset known as 'cDAI'. This cDAI token has an interest rate attached to it, hence allowing you to accrue interest on your deposit.

**FYI, all of this is done on the backend. So, all you have to do is deposit and earn interest. Similar to traditional savings accounts.**

3. Dharma adheres to AML (anti-money laundering) procedures. This said, after depositing, your funds are locked for 14 days. During this lock-up period, your bank is verifying the transaction and checking that it was actually you that executed it.

4. At the conclusion of the lock-up period (after the 14 days), you're now able to withdraw the funds as you see fit. You can withdraw the money back into your bank account, purchase other cryptocurrency tokens thru Dharma's in-app exchange, or send money to anyone's ETH address or Twitter handle.

**Dharma is an Ethereum wallet, meaning that it is only compatible with ETH and other tokens built atop of Ethereum's platform. As shown in the video, these kind of tokens are known as ERC-20 tokens. Thus, you will NOT be able to send/receive/purchase Bitcoin on this application. So, if you decide to interact with this app., please do not send any Bitcoin or Litecoin to this wallet - your funds will be lost.**

The purpose of the Dharma wallet is to give users the ability to control their money, as opposed to relying on a bank to hold it, use it to offer lines of credit, and in return offer you an unappealing interest rate of 0.06% - 1%

For more information, check out:
https://www.dharma.io/

Twitter:
@Dharma_HQ
@Guz_MassAdoption
Category
Crypto Wallets
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