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The DeFi innovation continues as the Dharma wallet introduces a way to transfer bank funds directly to DeFi on a platform.
Development of DeFi
The Dharma wallet announced yesterday that users can now send money to Aave, Uniswap, Yearn and Compound from their traditional bank accounts with a daily limit of $ 25,000.
Say hello to a whole new Dharma – the Ethereum wallet connected to your bank account.
📱 Conveniently deposit up to 25,000 USD / week directly from your bank account to Aave, Compound, Yearn and Uniswap – instantly.
From 🏦 dollars to 🛸 DeFi in a☝🏼Tap ✨ pic.twitter.com/sdOnrnTSB1
– Dharma (@Dharma_HQ) March 29, 2021
Citing the limited functionality of ETH wallets and crypto exchanges as inspiration for the new features, Dharma said, “The average Ethereum wallet has a toy fiat ramp with low limits and super high fees and won’t leave you at your bank take off . ”
The wallet now claims to have mOre capabilities than any fiat exchange and better fiat support than any other ethereum wallet.
Users can withdraw money from their bank at any time of the day, any day of the week, which may solve a major problem for users who are frustrated with limited banking hours.
Dharma’s announcement states that users can also “buy or sell assets cheaply in Uniswap,” although that’s presumably a relative term as Uniswap fees remain historically high. The functions of the wallet are supported by the dharmaOS SDK which can connect any Ethereum protocol action to Dharma.
A new paradigm shift
DeFi is notoriously complex and difficult for new users to find, which has made adoption an uphill battle in recent years.
With the number of teams working on projects to bridge the gap between centralized and decentralized funding and make the latter more accessible, the case for DeFi is getting stronger every day.
The St. Louis Federal Reserve released a report in February 2021 detailing DeFi’s numerous risks such as coding errors, project interdependence, and operational security.
However, the central bank acknowledged that if DeFi can overcome these problems, funding could be on the verge of a major paradigm shift with “the potential to create a truly open, transparent and immutable financial infrastructure”.
Disclosure: The author held Bitcoin at the time of writing.