Setting up a Rainbow Wallet + Earning Interest w/ OUSD
This walkthrough aims to demonstrate how easy it is to create a Rainbow Wallet (Ethereum Wallet), add funds, and begin earning high-yielding interest via Origin Protocol’s OUSD product.
Why should I learn this? You may ask.
Here are a few reasons why:
- Creating an Ethereum Wallet (specifically with Rainbow) takes no more than 2 minutes tops.
- The average savings rate (for a U.S bank account) is 0.06%.
- OUSD’s trailing 365-day APY is 13.91% (variable).
- Web3 is the next evolutionary phase of the internet. Obtaining an understanding of how to utilize certain wallet interfaces, protocols and Web3 compatible products will give you a leg up in comparison to those still stuck in Web2-entrenched environments.
What is Rainbow Wallet? What is OUSD?
Rainbow Wallet is as a fun, simple and secure Ethereum wallet that helps users manage their assets.
As the Web3 ecosystem continues to scale, Rainbow has done a fantastic job in adding support for Sidechains and Layer 2s (L2s).
At the moment, Rainbow Wallet supports the following networks:
OUSD is Origin Protocol’s yield-bearing stablecoin product. OUSD is backed 1:1 by a basket of stablecoins including USDC, USDT, and DAI.
In order for OUSD to accrue interest, the underlying stablecoins are deposited into yield generating strategies provided by DeFi protocols such as Compound, Aave, Curve, and Convex.
Want to check out OUSD’s vault holding and strategy allocations?
Take a look at the Analytics page.
Time to earn some yield! 🚀
Step 1: Set up your Rainbow Wallet
Rainbow Wallet is supported on both iOS and Android:
Once you’ve downloaded & installed the wallet to your mobile device, go ahead and open it.
In doing so, you’ll be sent to the main onboarding screen (image provided below). Since this is an onboarding tutorial, it’s safe to assume that this is the first time you’re either (1) creating an Ethereum wallet or; (2) using Rainbow wallet.
If so, continue by tapping on ‘Get a New Wallet’
Pro Tip: While onboarding, remember to write down your secret phrase and make sure to keep it in a safe location. If you lose this phrase, you can potentially jeopardize a loss of funds.
Step 2: Load up your wallet with ETH
You have two options when adding funds to your Rainbow Wallet:
- Send ETH to your wallet
- Buy ETH using Apple Pay
In the demo. I went ahead and sent myself some ETH. You can find your wallet address by:
- Tapping on the icon shown on the top-left corner of the screen
- Copying your address by tapping ‘Copy Address’ or;
- Tapping ‘Receive’ -> ‘Share’ -> ‘Copy’
Pro Tip: Remember to send enough ETH to cover Gas Fees (Transaction Fees)!
Step 3: Swap your ETH for USDC
Once you’ve topped up your wallet with ETH, you’ll need to swap/exchange some of it for a stablecoin (preferably USDC).
In order to do so you’ll need to:
- Tap on the swap/exchange button (it’s a button that looks like a squiggly line located in the bottom-right corner of the screen).
- Select which token you’d like to swap/exchange for by tapping on ‘Choose Token’
- In the search bar enter ‘USDC’ and select ‘USD Coin’
- Enter the amount of ETH you’d like to swap/exchange for USDC
Step 4: Swap USDC for OUSD
- Go to OUSD.com
- Tap on ‘Get OUSD’
- Tap on ‘Connect’
- Tap on ‘WalletConnect’ -> select ‘Rainbow’
- Open your Rainbow Wallet and tap on ‘Connect’
- Return to OUSD.com -> tap on the token drop-down menu and select ‘USDC’
- Enter the amount of USDC you will like to swap/exchange for OUSD
- Approve the Flipper contract by tapping on the ‘Approve the Flipper’ button
- Once the approval transaction is confirmed, proceed to exchange your USDC for OUSD by tapping ‘Swap’
- Sit back, relax, and earn yield!
Let me know what you think 💭
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