According to the recent announcement, investors can create an account by connecting to Coinbase and begin earning interest on their assets by sending DAI (DAI) or USD Coin (USDC) to their Dharma Smart Wallet address. Any DAI or USDC that arrives at a Dharma address instantly begins to accrue interest (every 15 seconds), with no additional steps needed.
“Behind-the-scenes, interest in Dharma is generated via the Compound Protocol — a global network of borrowers and lenders,” states the Dharma team. “Every loan in Compound is over-collateralized and secured by smart contracts on the Ethereum blockchain.”
While Dharma initially supported interest-bearing accounts for ETH, the company has since switched its focus to stablecoins for the time being.
According to the Dharma team, through the beta phase, $1.5 million had been deposited on the platform, earning as much as 7.4% APR. That number is now up to $1.66 million since launching to the public.
While there are no holds or limits on Dharma accounts, users should be cautious about which device they use to set up the account, as Dharma’s security requires users to withdrawal with the device used at signup or to approve a new device with the original device.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.