What is DeFi?

DeFi (Decentralized Finance) refers to financial services built on blockchain technology that operate without traditional intermediaries like banks. DeFi protocols use smart contracts to automate financial transactions, lending, borrowing, and trading. Otto Wallet simplifies DeFi by providing an AI-powered interface that guides users through complex protocols with natural language commands.

To get started with DeFi, you need a cryptocurrency wallet, some cryptocurrency for transactions, and basic understanding of blockchain networks. Otto Wallet makes this easier by providing AI-guided onboarding, automatic protocol recommendations, and step-by-step guidance for DeFi activities like token swaps and lending.

DeFi risks include smart contract vulnerabilities, impermanent loss in liquidity provision, market volatility, regulatory uncertainty, and potential loss of funds due to user error. Otto Wallet helps mitigate these risks by providing clear explanations of each protocol and transaction before execution.

A smart contract is a self-executing contract with terms directly written into code. In DeFi, smart contracts automate financial agreements and transactions without requiring intermediaries, enabling trustless and transparent financial services. Otto's AI explains smart contract interactions in plain English before you sign any transaction.

DeFi offers 24/7 global access, no geographical restrictions, enhanced transparency through blockchain, reduced counterparty risk, permissionless innovation, and often higher yields compared to traditional savings accounts. Otto Wallet amplifies these benefits by making DeFi accessible to everyone through AI-powered simplification.

Yield farming is the practice of providing liquidity to DeFi protocols in exchange for rewards, typically in the form of additional tokens. Users can earn yields by lending assets, providing liquidity to DEXs, or participating in governance protocols. Otto Wallet helps you understand yield opportunities and explains the risks in simple terms.

DeFi composability refers to the ability to combine different protocols like building blocks. For example, you can use a token swap to get collateral, lend it on Aave, use the receipt token in another protocol, creating complex financial strategies. Otto's AI can execute these complex multi-step strategies with simple voice commands.

Most DeFi protocols work with non-custodial wallets like MetaMask, Trust Wallet, Coinbase Wallet, and hardware wallets like Ledger or Trezor. Otto Wallet integrates with all major wallets while providing an AI layer that simplifies interactions and explains every transaction before execution.

Otto Wallet uses AI to translate complex DeFi operations into simple conversations. Instead of navigating multiple interfaces and understanding technical jargon, users can simply tell Otto what they want to achieve, and the AI handles the complexity while explaining each step in plain English.

Yes, Otto Wallet prioritizes security by providing clear explanations of all transactions and protocols. The AI never has custody of your funds and always requires your explicit approval for any transaction.