Zapper announced last Thursday, July 8, through his Twitter account, that he has started the launch sequence for a “big update”. According to the company, users can now deposit assets and earn interest in Zapper through its new AaveAave integration.
“At DeFi, liquidity protocols like Aave or Compound allow users to deposit their assets and earn interest. Users can borrow assets using their deposits as collateral and obtain passive income by providing liquidity to the market. To protect all pending deposits in the protocol, users cannot borrow more than they have deposited as collateral. There are many different guaranteed methods, including the “health factor” in Aave or the “utilization” in the compound”, he said through an article published on the Medium platform.
According to the company, those new to DeFi may think of these protocols as a different way to invest money, be it fiat (a government-issued currency) or crypto. Similarly, it indicated that, if the user has a bank account, it is likely that they are already participating in similar activities, such as lending and borrowing.
“Banks issue loans and charge interest, which borrowers must repay along with the loan principal. At DeFi, users can deposit or borrow. Depositors receive interest on their assets, while borrowers must deposit crypto assets as collateral and pay interest to secure depositors’ investments”, he added.
Earn interest on Zapper
The company indicated that since its launch it is possible to earn interest from the Zapper panel. This is a major new update that will give users even more flexibility when managing their assets with Zapper. Users can also complete a weekly “save” mission.
“The first liquidity protocol compatible with Zapper is Aave; be on the lookout for additional integrations to be released in the coming weeks”, he commented.
How to use Aave in Zapper
On the Zapper save page, users can view a list of assets to deposit, reorder the list by market size, and filter the list by token. The Annual Percentage Yield (APY) of each asset is also visible.
“Zapper makes it easy to seamlessly exchange any asset for tokens. In Aave, users must purchase the underlying asset before depositing it in Aave to earn interest. At Zapper, users can buy and deposit through Aave with a single transaction”, he said.
While adding that, when you have selected the asset, you want to deposit, click “Deposit” to open the transaction window. Process the transaction as usual, making sure to complete both steps in the approval of the transaction, “Approve” and “Confirm”.
Zapper recommends revoking infinite approvals and maintaining two-step transaction allocation.