[DeFi] Focus on the Dharma project, the gateway to decentralized finance – Cryptocurrencies

Dharma App

The aptly named Dharma project will not take us today to Asian countries where the term designates a religious belief in connection with Buddhism. The project has its roots on the Californian coast in San Francisco, cradle of the silicon valley. You will understand, the name of this company in the Challenge sector (decentralized finance) evokes zenitude not spiritual but rather financial. The main objective of the project is to make the benefits of the Challenge accessible to as many people as possible. So let’s dig a little deeper into the twists and turns of this exciting project that may make you want to get into the cryptocurrency market too.

A little history and contextualization of the Dharma project

Brendan Studied at the University of Pennsylvania, following his diploma he was hired by Microsoft then at Uber as analyst then manager. Nadav, he is the duo engineer, at the exit of Stanford he completed several internships as an engineer at Google then at Coinbase the crypto juggernaut of the valley. In 2017 Brendan and Nadav join forces to co-found the Dharma company.

Initially, the Dharma project aims to create a decentralized finance protocol competing with the Compound protocol. After a first fundraising of $ 120,000, Dharma is thus developing its own Challenge protocol to manage investments and loans on the cryptocurrency market in a decentralized manner without banking intervention through the use of a smart contract. If the project succeeds in building a community fairly quickly, initially minor bugs on the smart contracts as well as on the application itself require a lot of effort from the technical teams and doubts begin to settle when the implementation the end goal of creating a stable and secure Challenge protocol for users. The result of these two years of work around the Dharma protocol will have made it possible to launch in the spring of 2019 the Dharma Lever application, which provides fixed interest rates on investments and loans in cryptocurrencies made via the Dharma protocol.

In October 2019, Dharma teams publicly announce that they are pivoting, as is often the case in the tech world. Indeed, once competitors, Dharma now decides to use the Compound protocol for its application. The Dharma application will now aim to democratize access to the Challenge for the benefit of the greatest number even to novices who do not yet hold cryptocurrencies. The objective is clear, to offer an innovative investment solution, with interest rates far higher than those found today in the traditional banking sector. All while offering an excellent user experience, thus taking the opposite view of the really technical projects of the cryptocurrency sector more aimed at geeks than “mister everyone”. This pivot is supported by investors who see in the project a good potential to come and propose a high added value offer on the general public investment market.

One goal: democratize access to the Challenge and to cryptocurrencies

When we download the Dharma application, we immediately understand that the emphasis has been placed on design and user experience. Ergonomics and fluidity make access to decentralized finance as easy as pie. In fact the average user will not even have to know that he is part of the DeFi sector. Indeed in the Dharma project the Challenge and cryptocurrencies operate today more as a means than as an end in itself. Cryptocurrencies are used to earn interest that is on average up to more than 5%, a percentage that will make your passbook blush. On the other hand, Dharma offers an offer that is complemented by a digital cryptocurrency wallet that allows instant payments.

As soon as you own cryptocurrency DAI or USDC on your Dharma digital wallet, these cryptocurrencies will earn you interest. No action is required from the user. In addition, security mechanisms prevent your wallet from going into the red. Finally, and this shows that the teams have understood the issues of the crypto sector, Dharma provides customer service that will allow you to simply reset your account in the event of loss of password or even loss of your mobile.

As for deposits on your Dharma portfolio, as we said above, no prerequisites necessary, you can directly deposit funds using your credit card directly. You can in the same way recover them on your account. This will ensure a smooth first dip in the crypto universe.

Recently Dharma also launched a trading offer dedicated to assets in the Challenge sector. Either all the same more than 2000 assets that you can trade from your mobile application. A solution that thus completes the Dharma offer panel which thus consists in making you benefit from interesting returns on your cryptocurrencies, but also to allow you to make payments and to indulge in your trading activities for the many budding traders but also for the more experienced who will find a quick tool there of grip.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

And under the hood, Dharma, what is it?

Dharma is therefore doing everything possible to give itself the means to achieve its objectives, namely to invent your favorite decentralized finance application which will allow you to take advantage of the Challenge.. But by the way, how does Dharma work? Let’s take a look under the hood, maybe we’ll find a Buddha there? (Laughs).

If you have followed the story, you know that the Dharma Project is based on Compound protocol, which we took the time to define in detail in a previous article on Thecointribune. So the principle used by Dharma to grow your cryptocurrencies is quite similar to what we find on Compound.

Indeed, when you invest your cryptocurrencies DAI or USDC on your Dharma wallet, “collateral” cryptocurrencies are issued by the Challenge protocol which takes the form of a smart contract on the Ethereum blockchain. Remember that the Challenge has mainly developed around the possibilities offered by Ethereum blockchain technology and in particular the possibility of setting up smart contracts.

Let’s come back to your cryptocurrencies placed through the Dharma offer. Take for example that you place DAI, this will have the effect of creating collateral cryptocurrencies called dDAI. These dDAIs are like your DAIs augmented with the Compound protocol slightly remastered by the Dharma teams. Indeed the dToken work like Compound’s cToken with one exception that Dharma recovers 10% of the interest you can earn on your cryptocurrencies, the price to pay for a truly first-class user experience.

It is important to note that the teams of Dharma have chosen the the most total transparency, their code is freely accessible as are the profits generated as well as the 10% margin on interest. In addition it is important to note that the solutions offered by Dharma have been audited by external organizations. To learn more about how the collateral system works, I suggest you take a look at the article on Compound.

For simplicity Dharma is based on the same protocol With one detail that this protocol works as a backdrop for Dharma users, you will not have to manipulate dDai or dUSDC on your wallet, you can simply invest and recover the return on your investments at any time, in cryptocurrencies or directly in Fiat-type currency on your account if you prefer.

Finally, Dharma teams are investing as much as possible in the evolution of the Compound protocol, a decentralized protocol which allows the actors who are members of the protocol to vote on the various evolutions of the protocol. All votes cast by Dharma on the Compound Protocol are made public on their blog.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

In conclusion, Dharma is the project that facilitates your access to the universe of the Challenge with a very marked “user friendly” side. It feels a little like entering the future of cryptocurrency, one that would thus finally become accessible to all and frankly on this one the Dharma really has a hand! Currently there are approximately $ 1.4 million that are placed through the Dharma app. The potential is much greater with investments that had exceeded $ 25 million before the pivot made on the Compound protocol. So, will Dharma succeed in establishing itself as the gateway to the world of Challenge? To be continued!


Related Articles

Back to top button