In this guide, we’ll first see what Web3 and blockchain apps are. After that, we will connect our Linen Wallet to Aave, one of the most popular blockchain applications that allows users to lend or borrow crypto for an interest.
At the end of this guide, you will be able to safely connect to Aave and start earning interest on your crypto. (The same process applies to any other blockchain applications).
Are you ready? Let’s start:
What Are Web3 and Blockchain Applications?
If you have been in the crypto market recently, I’m pretty sure you have heard of Web3 and blockchain applications. With VCs funds investing heavily in this new technology, many industries are being disrupted by it, including gaming, social media, finance, and more. But what is Web3, and what are blockchain applications?
In short, Web2 is the version of the internet we use nowadays—an internet where a small group of companies like Facebook and Google dominates the web while keeping all the profits and users’ personal data, without leaving anything to the community. On the other hand, Web3 is the internet powered by blockchains (including Polygon), where applications are decentralized and owned by users, who participate in their governance and keep part of the profits. Furthermore, no one alone can make arbitrary decisions without the community's approval. Let’s see some practical examples to better understand the differences.
Facebook or Twitter can censor any profile or post
A Web3 social media would be uncensorable because there is no entity that can make arbitrary decisions
Visa or Mastercard can block any payments or accounts. Furthermore, they keep track of all users’ data
A Web3 payment service can’t block payments from certain accounts and doesn’t keep track of our activities
The central server of any company could go down at any time and affect its operations
Blockchain apps are decentralized and can’t be shut down
A financial broker keeps the profit for itself while paying almost nothing to users
You can lend liquidity to a decentralized exchange and earn money from traders’ fees
As you can see, decentralized apps have many advantages compared to the ones run by centralized entities. But how do you connect to a blockchain application?
An essential requirement to connect to blockchain applications is to have a cryptocurrency wallet equipped with a connectivity solution like WalletConnect, which we have recently implemented at Linen Wallet.
In this tutorial, we will see how to connect your Linen Wallet to Aave, one of the most popular blockchain applications that allows users to lend or borrow crypto for an interest. The same process applies to any other blockchain application.
How to Connect Linen Wallet to Aave
1) Open the Aave website and click on Enter app.
2) Click on select a market and choose the Polygon network.
3) Click on the top-right menu.
4) Click on Connect wallet
5) Select Polygon POS from the dropdown menu.
6) Click on WalletConnect
7) Click on page 6 and then choose Linen Wallet.
8) When your Linen Wallet opens, select the Polygon Network and click on Confirm.
9) You will see a confirmation message “Connected to Aave - Open Source Liquidity Protocol”
10) Open your mobile browser again, click on the menu at the top-right as before. As you can see, your Polygon address now appears at the top right.
How to Use Aave
Now that we've seen how to connect to a blockchain app like Aave, let's also see how to use Aave to earn interest on our crypto. From the menu, let's click on market.
11) This is the page where you can find all the available tokens you can deposit or borrow and the interest you can receive or pay.
It is worth noting that, besides the standard interest, you also receive an additional reward in Matic tokens (sponsored by Polygon). For example, if you deposit DAI, you receive 2.73% of interest in DAI tokens plus 1.32% of interest in wMatic tokens for a total of 4.05% (All APRs are variable)
12) Let’s deposit some DAI to earn some interest. Click on the menu at the top-right again and select Deposit.
13) Click on the token you want to deposit (in our case, the DAI token).
14) Input the amount you want to deposit and click on Continue.
15) Review your deposit and click on Deposit.
16) Linen Wallet pops up again so that you can sign the transaction and confirm the
deposit. (Every time you want to perform any kind of transaction on a blockchain application, you need to sign that transaction with your wallet.)
17) Let’s wait for our transaction to be processed (it usually takes about a minute.)
18) When the transaction is done, you can see it in the Activity section of your Linen Wallet.
19) As you can see in the Wallet section, we now have 50 DAI less, since they are deposited into Aave.
20) Open your mobile browser again, click on the top-right menu, and select Deposit.
21) Here you can see your deposit growing thanks to the interest you are earning.
22) So what if you want to get your money back after some time? Let’s see how to do that. Click on the top-right menu again and then select My Dashboard.
23) At the very top of the dashboard, you can see the wMatic reward you’ve earned. We’ll see how to withdraw them later. First, let’s withdraw our DAI. Simply click on Withdraw to proceed.
24) Input the amount to withdraw and then click on Continue.
25) Let’s then click on withdraw and sign the transaction using our wallet, which pops up automatically.
26) Click on Confirm to sign and approve the transaction.
27) As always, let’s wait for the transaction to be processed.
28) When the transaction is processed, we can see it in the Activity section of the wallet as we did before.
29) So we have now withdrawn our DAI with the interest earned. We now have the wMatic reward to withdraw too. Let’s open the mobile browser, click on the top-right menu and then select My Dashboard, as we did before.
Here we can see our available reward. Let’s click on Claim to withdraw it.
30) Let’s click again on Claim to make our Linen Wallet pop up and sign our transaction.
31) As we did before, let’s click on Confirm to sign and approve the transaction and withdraw our reward. After the transaction is processed, we will see the reward in our Linen Wallet.
As you can see, connecting to a blockchain app is not that difficult and once you learn how to do so, there are endless possibilities to unlock the true power of your crypto, including play2earn games, social media, NFTs, financial applications, and more.
If you still have some doubts on how to connect your Linen Wallet to blockchain applications feel free to reach out to us. We are always happy to help.