The developers of cryptocurrency wallet ZenGo announced the update today, which will expand the basic features of their virtual asset wallet.
According to the official post, the users will now be able to earn interest and rewards on their crypto holdings. The new update will offer an opportunity to earn passive income and allow clients to use the wallet as a virtual currency savings account.
The wallet supports holdings of stablecoins, pegged to the US dollar. It’s said that the new feature will allow its users to select what percentage of earnings they want to set aside, with the returns being of a higher rate than in traditional finance.
Partnerships for lending and staking
Developers report their collaboration with decentralized finance (DeFi) platforms, like Compound and Figment. Both partnerships are based on technically different methods to earn interest: by providing liquidity and staking.
The wallet incorporates Compound, an automated crypto lending platform, which relies on software and smart contracts to bring together borrowers and lenders of digital currencies. The decentralized platform operates as a liquidity pool to earn interest on several Ethereum-based assets.
Compound, the San Francisco-based startup recently raised $25 million to expand the crypto lending that marks one of the biggest venture capital investments in decentralized finance (DeFi) startup to date.
At the same time, ZenGo collaborates with Figment Networks to earn rewards on Tezos, an open-source platform for assets and applications. This time, the user earns interest by holding funds in a cryptocurrency wallet to support the operations of a blockchain network and in return gets a reward for the contribution.
Figment, a Canada-based Proof of Stake (PoS) platform is a staking service provider where users, such as token-holders, can interact with the leading PoS blockchains.
Wallets that make assets work
Although the blockchain ecosystem is already acquainted with wallets acting like a savings accounts, ZenGo claims their wallet update to be the easiest and safest way for earning passive income in crypto.