Simplifying DeFi Borrowing With Rocko

Decentralized finance (DeFi) has surged in popularity due to its ability to increase access to financial services and provide users with greater control over their assets. One notable application is borrowing stablecoins or other cryptocurrencies using crypto assets as collateral. This offers a new avenue for liquidity and enables individuals to secure funds for large purchases, everyday expensense, debt refinancing, investments, and more. Despite these benefits, DeFi lending platforms often come with user interfaces that are either overly complex or too simplistic, posing challenges for both beginners and experienced users. The difficulties of navigating multiple protocols, managing non-custodial wallets, and understanding complex financial concepts and terminology are significant hurdles to broader adoption. In this article, we’ll cover Compound, a popular DeFi protocol, and the steps required to take out a loan using Compound. Additionally, we’ll introduce Rocko, a new platform for DeFi borrowing, and how it can simplify the borrowing process.

What is Compound?

Compound is a decentralized lending protocol designed to facilitate the borrowing and lending of a variety of cryptocurrencies on the Ethereum blockchain. Started by founders Robert Leshner and Geoffrey Hayes, Compound made its debut on the Ethereum network in 2018. Over the years, it has evolved into one of the leading DeFi lending platforms, accumulating billions of dollars in crypto collateral deposits and loans. 

Unlike traditional financial systems, Compound leverages smart contracts to automate its operations. These self-executing contracts enforce the terms and conditions of financial transactions without the need for intermediaries. Every lending and borrowing service provided by Compound, along with the management of accepted digital assets, is governed by these smart contracts. This means users can lend or borrow using Compound in a quick, permissionless manner. 

Compound III, which is the latest version of Compound, allows users to borrow assets such as US Dollar Coin (USDC) and Ether (ETH) and lend assets such as ETH, Wrapped bitcoin (WBTC), Uniswap (Uni), Compound (COMP), and Chainlink (LINK)

How Do You Take Out a Loan Using Compound?

The process to take out a loan using Compound has typically required the below steps:

1. 1. Set Up a Wallet: Create an Ethereum wallet, such as MetaMask or Coinbase Wallet. A wallet is a private and public key pair which allows you to transact on the Ethereum network and interact with smart contracts such as Compound. For wallets like MetaMask, start by downloading the extension or application from the official website or app store. Follow the on-screen instructions to create a new account or import an existing one. It’s crucial to back up your seed phrase, a set of 12 words that allows you to access your crypto wallet from any new device.

   2. Fund Your Wallet: Transfer the crypto you intend to use as collateral for your loan to your Ethereum wallet. You will be able to confirm the funds have arrived through your wallet’s user interface or on Etherscan.

   3. Connect to the Compound: Visit Compound’s website and connect your wallet. You’ll then need to choose which market and network you wish to use for your loan.
      

• Supply Collateral and Withdraw Your Loan: Using Compound’s user interface, you will be able to decide how much crypto to supply as collateral and how much crypto to borrow for your loan. You will then need to sign the transaction with your wallet which confirms the transaction.
  

• Use Your Loan How You Want: The loan will be transferred to your Ethereum wallet. Depending on how you wish to use the funds, you can then transfer them where you want. For example, if you wish to use the loan to pay down your credit card or buy a car, you’ll likely need to transfer the loan to your exchange account and convert it into USD. 

Does the process sound confusing? If so, you’re not alone. Unfortunately, the steps above are not simple for most users due as they require many transfers and introduce novel concepts and interfaces. Luckily, Rocko has simplified the process and made it much easier for users to borrow from DeFi protocols like Compound without needing an existing Ethereum wallet or any DeFi expertise. 

Taking Out a Loan With Rocko

Rocko has simplified the process so that you can quickly take out a loan with the below steps:

• Create an Account: Sign in with your email to quickly create an account on Rocko.
  

• Set Up Your loan: Rocko’s easy-to-use interface allows you to quickly set up a custom loan. Choose what and how much to borrow, which crypto to use as collateral and how much to pledge, and which lending protocol to borrow from. Rocko’s interface provides key information for each protocol such as loan terms and what they mean so you can be sure you’re making the best choice. You can also choose where to receive your loan so for example, it could be sent directly to your exchange account allowing you to convert it to USD much faster.

• Finalize Your Loan: Once you confirm your loan specifications, you’ll receive a Rocko smart wallet. Transfer your collateral into your Rocko smart wallet and it will automatically deposit your collateral into the specified lending protocol and withdraw your loan to your designated account/wallet. You can even connect your Coinbase account to further simplify the process and automatically transfer your crypto collateral to your Rocko smart wallet in order to withdraw your loan. 

Regardless of your familiarity with DeFi or whether you have an Ethereum wallet, Rocko simplifies the process and reduces the steps involved to taking out a loan so that you can receive the funds as quickly as possible. However, Rocko offers more than just a great UX.

What Are Some of The Other Benefits Rocko?

Some other benefits include:

Non-Custodial Wallets: Rocko smart wallets are non-custodial, meaning only you have control over your Rocko smart wallet and any funds held inside. Plus you can skip 12-word seed phrases and use secure methods like Passkeys to access your wallet.

Comprehensive Loan Dashboard: Using Rocko’s loan dashboard, you can monitor key metrics, view transactions, and manage your loan all in one place. When you’re ready to repay your loan, you can do so through your loan dashboard and your collateral will be automatically returned to you.

SMS & Email Alerts: Set up custom sms and email alerts to monitor changes in your collateral value and interest rate. This can help mitigate liquidation and interest rate risk so you can maximize capital efficiency and reduce your interest expense. 

How Do I Get Started With Rocko?

It’s simple to get started with Rocko. Head over to https://rocko.co now to get a crypto-backed loan quickly and at a competitive rate!