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Spendless can automatically help users complete donations, or save and increase income, without having to manually perform and pay for it every time.
Original Title: “Introduction | Spendless-Awaken Your Funds”
Written by: Victor
Translation & Proofreading: Min Min & A Jian
On the Ethereum network, your funds have huge potential-(once they are set) can automatically help you accomplish what you want to do, such as donating to charities or saving income (higher than the interest rate provided by traditional banks) ) Without having to manually execute and pay for it every time.
Spendless brings together high-quality smart contracts and agreements built on Ethereum, allowing users’ funds to be more useful. Spendless is the gateway to DeFi transactions.
What is DeFi?
The DeFi world is composed of smart contracts and is open to everyone who has an Ethereum wallet. You can understand DeFi as a set of interrelated “currency Lego” that can be used to create new architectures. These “currency Lego” can be combined to create a variety of products, involving transactions (Uniswap), borrowing (MakerDAO), lending (Aave, Cream), insurance, liquidity mining, etc. There are no custodians and intermediaries in the DeFi field. New DeFi products can integrate existing DeFi products without anyone’s permission. This means that users have access to powerful new financial instruments, but they should be investigated before using any protocol for transactions. (Here is a video where Andreas Antonopolous briefly introduces DeFi.)
The Spendless we built allows users to easily access the DeFi protocol, thereby revitalizing funds and better utilizing the benefits of funds. Spendless products are bred from a large number of DeFi agreements and can provide a friendly, concise and sustainable user experience. We reject untested contracts, unsustainable income incentives, and agreements with capital risks.
Earn & Give (Earnings & Charity)
Earn & Give allows users to revitalize funds, use idle funds to earn income, and then re-use this income to exert positive effects, such as planting trees, reducing carbon emissions from air travel, or establishing Internet files. You only need to select an activity you want to support, deposit DAI through an Ethereum transaction, you can immediately get the proceeds, and use the proceeds to fund this activity. Then, you can track the impact of this revenue in real time! The control of the principal DAI is still in your hands. You can submit a transaction to withdraw this DAI at any time.
The currency LEGO used by Earn & Give is:
- Stable coin (DAI)
- Dynamic interest-bearing lending platform (Compound)
- An agreement to retain the user’s control over the principal while transferring interest to another address (rDAI)
Lego in these currencies does not require additional fees.
Earn & Save
Earn & Save allows users to revitalize their funds and deposit them in a fund pool that implements the strategy of maximizing revenue. This product uses Year’s vault smart contract:
Vault is a pool of funds that can automatically generate income based on arbitrage opportunities in the market. The treasury can realize the socialization of gas costs, the automation of interest generation, and the rebalancing of asset portfolios, and automatically transfer capital when arbitrage opportunities arise, thereby benefiting customers. End users do not need to be proficient in related underlying protocols or DeFi. Therefore, the vault is a passive investment strategy.
The currency LEGO used by Earn & Give is:
- Stable coin (DAI)
- A deposit pool (Yearn DAI Treasury) that generates income through transaction fees and liquid mining tokens (converted into DAI)
- The agreement (Curve) that supports the Year Vault will charge the following withdrawal fees: (1) (charged based on the withdrawal amount) 0.5% of the withdrawal fee; (2) charge 5% of the fee based on the additional revenue (similar to a revenue bonus)
Spendless itself does not charge any fees, but if you want to complete a DeFi transaction, users must pay a certain amount of gas to package the transaction on the Ethereum blockchain. The gas fee depends on the complexity of the transaction and the congestion of the Ethereum network. Compared with the low congestion period, the gas fee may increase by 10 times (or more) during the congestion peak period! Therefore, if you can wait for the congestion trough period, you only need to pay a lower gas fee. The gas fee has nothing to do with the amount of your transfer. The gas fee for a $10 DeFi transaction and a $1,000 DeFi transaction are the same. Therefore, sending a large transaction will save money compared to sending multiple small transactions.
- Wait until the low congestion period to submit the transaction-weekends are usually better than working days
- Try to conduct low-frequency large-value transactions as much as possible, instead of high-frequency small deposit and withdrawal transactions
Revenue Impact Estimator
You can use our revenue impact estimator to better understand the revenue of Spendless’s different products. The tool calculates the current revenue of the product, the expected gas fee for necessary transactions, and the additional fees charged by Lego, the currency that constitutes the product, and estimates the specific date when the revenue exceeds the fee.
The revenue impact estimator can be found on the deposit page of any Spendless product.
Spendless is a user experience aggregator-it does not build or maintain any smart contracts or agreements, but acts as a portal for users. DeFi is an emerging industry. Therefore, before interacting with the Spendless smart contract portal, users should be wary of some risks.
We cannot recover funds or refund users. We can never control your funds, nor can we interact with smart contracts on your behalf. Do not deposit more than you can afford.
Earn & Give risk
rDAI, Compound and DAI smart contract vulnerabilities may bring risks to your deposit. Although these smart contracts have been audited, they cannot guarantee 100% security. These smart contracts also have governance risks. Finally, if the DAI utilization in Compound is close to 100%, users will not be able to retrieve their DAI immediately until more DAI is released.
Earn & Save risk
Spendless currently uses V1 yDAI Vault. Although some aspects of the V1 yDAI Vault code have been audited, no formal audit results have yet been disclosed. Vulnerabilities in the Yearn contract or the underlying smart contract used in this investment strategy will bring risks to your deposit. In addition, even if there are no smart contract vulnerabilities, any stable currency (DAI, USDT, USDC and TUSD) used in the current yDAI Vault investment strategy may cause asset losses if it is decoupled from the US dollar. Click here to learn more about Yearn Vault.
Editor’s note: On February 5, 2021, Year Finance’s V1 yDAI Vault vulnerability was exploited by hackers and lost 11 million US dollars. Please be aware of the risks.
Disclaimer: As a blockchain information platform, the articles published on this site only represent the author’s personal views and have nothing to do with ChainNews’ position. The information, opinions, etc. in the article are for reference only, and are not intended as or regarded as actual investment advice.