According to Statista, the number of unique addresses that traded a Decentralized Finance (DeFi) asset has gone up from 1 million to 4.5 million since January 2021. This 4.5-time jump in the number of unique addresses is a clear indicator of an equivalent jump in the number of crypto DeFi wallet users.
With this unprecedented growth, the DeFi wallets and their features have evolved extensively. So, if you plan to start developing your own DeFi wallet, you must understand that you need to offer your users more than what the existing wallets are offering. In this article, we will try to evaluate what is trending in the DeFi industry and how that can impact the features of DeFi Wallets. But before that, let’s understand what is a DeFi Wallet.
A DeFi wallet is a noncustodial wallet. It means that the wallet and its keys are not controlled by anyone else but only by the user of the wallet. When a user sets his DeFi wallet, they generate a private key that only they can access. This private key is used to operate the DeFi wallet.
The DeFi wallet ensures that no intermediary or exchange authority has access or custody of the user’s crypto assets. Unlike the centralized wallet, the DeFi wallet does not require users to provide any personal information. However, before you start developing your own DeFi wallet, you must understand the parameters based on which a user selects a DeFi Wallet.
The following are the factors that a DeFi wallet user seeks before pinning down a DeFi wallet:
The choice of crypto DeFi wallet primarily depends on the blockchain the user intends to use it on. Even when you build your own crypto DeFi wallet, you will not make it available on all blockchains. Hence, it’s very important to evaluate the blockchains you will integrate into your DeFi wallet. These should be cheap, fast and scalable blockchains like Polygon, Solana, and more. However, you cannot miss Ethereum despite all its challenges it is still the leading blockchain in DeFi space.
2. Dapp integration
Users need a DeFi wallet to access any dApp. DeFi wallets become an access point to a dApp. Many dApps provide in-built access to DeFi wallets so that the users do not have to leave the security of the dApp for crypto transfers. Thus, integration support for popular dApps can be a turning point for the success of a DeFi Wallet.
Some of the leading wallets offer dApp Browser within the wallet. A fully-functioning Web 3.0 dApp browser allows users to find out the best dApps from a wide range of selections. Supporting dApps on blockchains like Ethereum and Binance Smart Chain (BSC) dApps allows users to utilize a variety of protocols such as PancakeSwap, 1inch, OpenSea, and more.
3. Lower Fees
Many leading wallets like Trust wallet, Crypto.com DeFi wallet, and Coinbase wallet offer a wallet with no fees. That means that users have to pay zero fees to use their crypto DeFi wallet but whenever they use a dApp associated with the wallet, the fees will apply.
4. Asset Selection
With thousands of crypto assets available for trading in the market, the user demands to have most of the popular crypto assets to be supported by the wallet. Leading wallets like Trust wallet support over 53 blockchains and a huge variety of tokens built on those blockchains. The wallet can also be designed to allow seamless token swapping or buying crypto assets with credit and debit cards.
5. DeFi Staking
The crypto market might not always encourage trading and sometimes users might just hold on to their assets to find the best time to start trading again. For these times, the users can choose to stake their assets using DeFi wallets. A dedicated staking mechanism supporting multiple crypto assets can dramatically increase the user base of a DeFi wallet.
You can start developing your own DeFi wallet that is catered to meet your target audience’s needs. If you are looking to get started right away, our blockchain development company can help.
We offer customized services to help you build your DeFi wallet. In addition, we provide a white label solution to help you quickly launch your wallet into the market.
Schedule a free demo of our white label crypto DeFi wallet or connect with our subject matter experts to share your business needs.