Introduction The Decentralized Finance (DeFi) Revolution is taking over traditional finance (TradFi) and centralized exchanges (CEX), with billions in...
Welcome to Part 2 of Stably’s series on using stablecoins in DeFi. In this article, we’ll talk about how to exchange fiat currency for stablecoins using Stably Prime. Understanding how to obtain and liquidate stablecoins is the first step toward using stablecoins in DeFi.
With inflation hitting 8.5% while high-yield savings accounts continue to only offer around 0.70% annual interest, stablecoins can be a competitive, alternative way to earn money by leveraging otherwise idle funds.
Combining the familiarity of fiat currency with the decentralized magic of cryptocurrency, stablecoins make it easy to access the unique opportunities available in Decentralized Finance (DeFi).
Now that we’ve learned about some of these opportunities in Part 1, in Part 2 we’ll explain how to exchange fiat currencies for stablecoins (and vice versa) and transfer them to a wallet where they can be used in hundreds of different Decentralized Applications (dApps).
Acquiring Stablecoins with Stably
Stably Prime makes it easy to convert USD into your preferred stablecoin or stablecoins, transfer them to the appropriate network, and save or cash out your earnings.
To get started, the first thing you’ll need to do is open an account and complete the KYB (Know Your Business) process.
Set up an Account
Head to https://prime.stably.io/ and click the “Sign Up” button in the top-right corner of Stably’s homepage to create an account.
We’ll then ask you to provide some relevant information and to create a password.
Once you’ve entered your information, you’ll need to confirm your email address.
If you don’t see an email from us after a few minutes, please check your spam folder!
Once you’ve confirmed your email, we’ll need to verify your identity as part of KYB requirements. Click the “Trade” button in the top-right corner of the screen to initiate the process.
Click “Individual” if you’re setting up an account for yourself or “Business” if this is for your company. Enter the required information and we’ll process the information in 3-5 business days.
Once your account has been verified, select the currency you’d like to deposit.
For this example, we’ve selected USD. Click the “Deposit” button to select your preferred method for depositing funds.
Stably Prime accepts deposits via stablecoins, domestic and international wire transfers, and Automated Clearing House (ACH). Be sure to read the options carefully to decide which option works best for your situation.
You may be able to connect your account by logging into your online banking services or you can simply provide routing and account numbers.
Trading USD for stablecoins
Once your bank is connected and the deposit has cleared, you can exchange your currency for one or more stablecoins.
Stably’s borderless accounts make it easy to obtain a variety of different stablecoins, including:
- Stably USD (USDS)
- QUSD (QUSD)
- Tether (USDT)
- USD Coin (USDC)
- VeChain (VEUSD)
To acquire your desired stablecoin or stablecoins, log into Stably Prime and click “Trade” in the top-right corner of the home page.
Select the currencies you want to trade and receive. Then, enter the amount of currency you’d like to trade. Stably will calculate and display the exchange rate, the number of tokens you’ll receive, and the fee you’ll pay for executing the transaction. Please read these carefully!
If everything looks correct, click the “Execute” button and we’ll confirm the transaction.
Once you’ve deposited funds into Stably Prime, you can click the “Withdraw” button to move your stablecoins to a wallet where you can use them for different applications or liquidate earnings to fiat and transfer them to another bank account.
Before withdrawing funds from Stably Prime, you’ll be prompted to set up 2-factor authentication (2FA). This provides an extra layer of security in case someone tries to access your account and withdraw funds without your permission.
After 2FA is set up, you’ll be able to access withdrawals. Start by choosing whether you want to withdraw stablecoins to a digital wallet or USD to a bank account.
For this guide, we’ll assume you’ve acquired some stablecoins and want to withdraw them to an external wallet for use in a particular dApp.
Select the stablecoin you want to withdraw.
Next, choose the network you want to send funds to and enter your wallet address.
To use your newly-acquired stablecoins, you’ll need to know which network the dApp is hosted on. For example, the Compound lending protocol lives on the Ethereum main net, while OMM, another lending protocol, is deployed to the ICON blockchain.
Networks like Ethereum are more decentralized but require higher transaction fees to move funds and use dApps on the network. On the other hand, networks like Binance Chain sacrifice decentralization to make it fast and cheap to transfer and use assets.
In addition to selecting the network and entering a wallet address, you can also add a nickname to the account. Naming the account might be helpful if you plan on using it regularly.
Click “Submit” to add the wallet to your account. Select the wallet you want to send stablecoins to and enter the amount you want to send.
Stably will display the amount entered as well as the transaction fee associated with the withdrawal. If everything looks correct, click “Confirm” to initiate the transaction.
Some networks process transactions faster than others but under normal circumstances, the process will take anywhere from a few seconds to a couple of minutes.
Start earning with DeFi
Now that we’ve demonstrated how to obtain and transfer stablecoins, we’ll talk about how to lend stablecoins for interest in Part 3.
After that, we’ll explain the ins and outs of supplying liquidity to liquidity pools and yield farming in Part 4.
To get started with Stably Prime, please visit https://prime.stably.io/ or head to https://www.stably.io/ for more information about Stably’s borderless accounts, Stably USD (USDS), and Asset-Tokenization-as-a-Service.
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