What Is DeFi?
DeFi, or decentralized finance, is a set of financial services that run directly on the blockchain without banks or other middlemen. There’s no central office holding your assets or telling you what to do. Instead, everything is powered by smart contracts - special programs on the blockchain that automatically carry out the terms of an agreement. In this article, we’ll look at how Gem Wallet brings together the core features of DeFi in one app, making it safe and easy to swap tokens, stake, lend, and explore stablecoins.
Blockchain is a secure way of storing data where records are linked in a chain of blocks and copied across thousands of computers worldwide, making them transparent and tamper-resistant.
1. How to Swap Crypto in DeFi With Gem Wallet
Swaps are a key tool in DeFi, allowing you to quickly move between assets for different purposes. This could be converting BNB to USDC, exchanging staking rewards, or switching to yield-bearing tokens like USDY. With Gem Wallet, it all takes just a few seconds - right in the app, with no exchanges or bridges. You can easily swap tokens within the same network - for example, SOL to TRUMP - or perform a cross-chain swap, such as BTC to ETH. The wallet includes a built-in decentralized aggregator that automatically finds the best rate across top DEXs like PancakeSwap, THORChain, Across, and others. Swapping is a simple and secure way to access everything DeFi has to offer - all without leaving your wallet.
Gem Wallet lets users swap Bitcoin for Ethereum thanks to its built-in DEX
2. Providing DeFi Liquidity With Gem Wallet
Once you’ve mastered swaps, the next step is not just exchanging tokens, but helping others do it too. With Gem Wallet, you can become a liquidity provider on platforms like Uniswap, which means you’re not just holding tokens, but helping the entire ecosystem run smoothly. By adding your tokens to a pool, you make it easier for others to swap crypto - without middlemen or centralized exchanges.
In practice, it’s simple: connect the wallet via WalletConnect by scanning a QR code, choose a token - like ETH - then add a second one to create a pair. Set the fee level (for example, 0.3%) and create a new liquidity position, as shown in the image below:
Selecting a token pair (e.g., ETH) to provide liquidity via Uniswap. Source: app.uniswap.org
Unlike just holding, liquidity pools automatically rebalance your tokens, which can soften price swings. If one token goes up sharply, your earnings might be a bit lower than just holding - but if it drops, you’re better protected.
3. How to Stake Tokens in DeFi With Gem Wallet
After providing liquidity, another way to make your assets work for you is staking. Many blockchains - like Solana, TON, or Sui - let you earn extra rewards through staking, and with Gem Wallet, it’s all available right inside the app. The process is super simple: top up your wallet, go to the Stake section, choose a validator, enter the amount, and confirm. You can start unstaking anytime - for Solana, for example, it takes about 3 days.
But staking isn’t just about earning. In networks like Cosmos, where inflation is high - dynamically adjusting with every block and ranging from 7% to 20% annually - staking is actually a way to preserve the value of your tokens. Without it, your balance stays the same, but its real value slowly decreases.
Smart Validator Selection: Gem Wallet’s Curated List
For staking to really pay off, choosing a reliable network participant is key. Gem Wallet makes it easy: the wallet pre-selects top trusted validators, showing you a clear list with up-to-date APRs. No need to research reputations or take risks - it highlights those with a solid track record. The final choice is always yours.
Who are validators? They are trusted members of a blockchain who help keep the network running by checking and confirming transactions. When you stake your tokens, you’re letting one of these validators use them to support the network - and in return, you earn a share of their rewards.
Staking with Gem Wallet is easy, safe, and doesn’t require deep technical knowledge. It truly is passive income in a few clicks, turning your wallet from simple storage into a powerful Web3 portfolio tool.
Staking ATOM: enter amount, select validator, confirm transaction
4. DeFi: Trading on DEX With Gem Wallet
Gem Wallet gives you access to decentralized trading right from your phone. For example, you can connect to Hyperliquid - a powerful DEX on Arbitrum where USDC is the main trading currency. It’s easy: just select WalletConnect, find the wallet - and you’re in.
Don’t have USDC on Arbitrum yet? You can:
- swap some ETH right in the wallet,
- transfer tokens to your Arbitrum address,
- or simply buy USDC with a credit card - directly in the app.
A few taps - and your stablecoin is ready to trade.
Don’t forget to leave a small amount of ETH in your wallet to cover network fees.
Connecting Gem Wallet to Hyperliquid via WalletConnect
5. Lending Tokens Through DeFi
Holding tokens is safe - but in DeFi they can also generate additional income. For example, you can lend Bitcoin or Ethereum through Aave - one of the most trusted and widely used DeFi protocols. You can also lend stablecoins like USDT or USDC. Right now, over $5.7 billion in USDT is supplied to Aave, and more than 80% of it is actively being borrowed - meaning your tokens could be in demand and generating steady returns.
To get started, just open the Aave website, select the wallet from the list - and within a couple of clicks, your tokens can start working for you.
USDT supply APY on Aave. Source: app.aave.com
6. How Gem Wallet Opens Access to DeFi Through Stablecoins
Stablecoins are cryptocurrencies whose value is pegged to real-world assets like the US dollar, euro, or gold. For example, 1 USDT ≈ 1 USD. They’re probably the easiest and most understandable way to enter the world of DeFi. For most users, this is where the journey begins: they are stable, easy to use, and free from sharp price swings.
Gem Wallet makes working with them even easier: it supports around 20 stablecoins across different networks - from USDT and USDC to RLUSD. Want to hold USDT as ERC20 on Ethereum or TRC20 on Tron? The wallet automatically creates the correct address for each network.
But it’s not just about holding. Along with stablecoin trading and DeFi lending, you can also:
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Start Investing: Have USDT but want BTC? Just a couple of taps - and Bitcoin is already in your wallet.
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Earn Passive Income: Swap some of your USDT for a token you want, like Injective, and stake it right in the app - fast and without extra steps.
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Explore RWAs: In DeFi, tokens backed by real-world assets (Real-World Assets) are becoming popular - from real estate and stocks to gold. For example, in Gem Wallet, you can turn USDT ERC20 into Tether Gold XAUt in just a few clicks and become the owner of digital gold.
Gem Wallet isn’t just a place to store your crypto - it’s a secure, multifunctional tool where every feature works seamlessly together, turning your wallet into a convenient launchpad to the entire world of DeFi.
