It’s no secret that the crypto UX is far from finished: the things that avid DeFi users are accustomed to, often seem strange or complex to new retail participants.
In this twitter space, THORChain and ecosystem builders Chad Barraford and Chad Thoreau, welcome Paul Puey, cofounder of Edge. Edge is a self-custody wallet that provides onboarding and DeFi services. In this space, Paul explains how Edge is bridging the gap between DeFi and CeFi, how integrating with THORChain can benefit users, and more.
Read our notes below to learn the details.
Edge Wallet
● Edge provides self custody and exchange services between crypto and fiat.
● Integrated with over 16 exchanges.
● Also provides cross-chain swap services for tokens.
● Aims to provide privacy, censorship resistance, autonomy.
● Provides key management users for people new to crypto.
● Users can set up password backup.
● Edge even provides free phone and in-person support for users.
How Edge is Making DeFi Simpler
● Current crypto UX for signing transactions is not optimized.
● Edge wants to provide a one-step solution for transactions.
● Currently provides a one step option on Tombswap that combines a 4 - 5 step process of creating and staking two assets, into one transaction.
● Will be implementing Aave BTC borrowing that automatically moves borrowed funds to users bank account.
● Action nodes are used for strategies involving automated transactions both on-chain or with user bank accounts.
CeFi vs DeFi Experience
● Over the past few months Edge has seen 8 figures in volume on DeFi, which is their most used service in a bull market.
● CeFi provides some benefits over DeFi, such as privacy.
● Many entry-level crypto users don’t demand all the options that DeFi provides.
● For top tokens, DeFi provides better swap rates.
● Edge wants to abstract the crypto tech, as most people don’t need to know about what is going on behind the scenes.
Chad Barraford
● Abstracting the tech away has downsides, such as limiting user choices, which could lead to more risks being taken that users don’t get to decide on.
What Edge Users Prefer
● Most popular swap routes include: BTC to stablecoins, stablecoins to BTC and ETH, and monero swaps.
● BTC to wBTC will likely become a popular swap when Edge integrates automated Aave borrowing feature.
Edge Integration With THORChain
● First learned about THORChain 2-3 years ago, liked the concept.
● Would like to integrate with THORChains’ new single-sided liquidity staking (read our notes on this announcement) soon.
● Could potentially develop limit order function or a scheduling transactions function with THORChain.
● Would like to have 90% + of Edge DeFi volume route through THORChain.
● Edge would like to see THORChain include more privacy networks as this is what their users enjoy.
● Polygon integration would also help as the network has useful fiat on and off-ramps as well as deep liquidity.
How Edge On-chain Swaps Work
● Finds the trade route with least amount of slippage.
● Prioritizes fixed rate quote over variable rate quote.
● Working on finding the optimal slippage amount that users are comfortable with and DEXs can provide.
● Currently it can be difficult to figure out how much slippage a trade may incur until you actually make the swap.
● APIs are being developed to solve this and team is looking for community feedback.
Q&A
Q: How much demand is there from Edge users for single-sided yield? / @RWizard777
A:
Has not been measured, but Edge users would probably like single-sided yield, as it is a more convenient way to earn yield, and has already become very popular on CeFi.
This could be a helpful for BTC users, as people storing BTC on lightning wallets either have to use DeFi or CeFi to earn yield on their BTC.
Q: Would it be helpful to create “hybrid quote” which combines fixed and variable quotes? / @oleprohon
A:
This would be helpful to crypto users, but not entry-level retail users.
Sometimes giving users too much choice can turn them away from the product.
Q: How is Edge considering yield quote rates in DeFi? / @Pluto9r
A:
Quoting isn’t that difficult of a problem compared to swap quote rates, as you can use previous averages to make predictions, and adjust if not satisfied with APR.
Q: What could privacy chains bring to THORChain? / @xzab216
A: Paul
This would be a good fit, and it would help people to get the assets on the privacy chains, which is a common problem.
Would like to integrate with HAVEN.
It is difficult to integrate with Privacy chains, it requires cooperation with developers.
Q: Does Edge take a swap fee? / @jankelux
A: Yes, Edge takes a 50bps swap fee, which is transparent on-chain.
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