Quick Notes on Stable Finance

December 11, 2024 ☼ Crypto ☼ Payments

I just explored StableFinance.io, a crypto wallet that enables users to yield farm by directly connecting with Aave.

Some initial thoughts (I’ll keep building on this):

• Lower Entry Barriers to Yield Farming: Stable allows users to connect their bank accounts, making it resemble a traditional finance (TradFi) interest-yielding app, except with potentially much higher returns.
• Simplicity: Integrated with Apple’s Face ID, simplifies self-custody for users.
• Dependence on Aave: What happens if Aave faces issues similar to Anchor?
• Differentiation: Why would users choose Stable over connecting to Aave with their original wallets? What makes it stand out?

Some ideas:

• Expand beyond Aave and USDC.
• The concept of a neobank-like wallet dedicated to stablecoins is exciting, given the growing interest in this space. How about adding features like portfolio collateral tracking? Stablecoins have different asset compositions but they are pegged to similar assets, limiting their utility as a hedge against fiat. Over time, offering users greater control to swap stablecoins may add value?
• This app seems particularly suited for TradFi users. Targeting them with educational content on stablecoins and DeFi could help bridge the gap for newcomers. Stablecoins are after all an ideal entry point for exploring DeFi. Institutional users could be another target user group

Overall, Stable seems like a promising tool for simplifying access to DeFi and making yield farming more approachable, especially for users transitioning from traditional finance.

Next, I’ll deposit some funds on Stable to see how yield farming through Aave works in practice. I’m assuming USD from bank accounts will first need to be converted into USDC within the Stable app.