As you know from my previous guest articles few DeFi products let you make steady and passive gains 7.5% APR from your DAI savings. rDAI was built to give people a chance to automatically allocate accrued interest to a recipient (external ETH address) of your choice with the most common use of the feature being to make contributions to charity.
You are locking your DAI that can be redeemed at any time and the interest that this DAI makes is transferred automatically to the charity you choose. So rDai activates your idle DAI to earn interest, and automatically sends the interest to other addresses (such as a charity). All this without ever leaving your wallet.
How does rDAI work in practice?
rDai is 1:1 backed by DAI. The custody of collateral also remains decentralized so it is a pure example of the DeFi project. Users can lock DAI tokens and redeem them via a smart contract, which means another party is never in charge of your DAI. You can read more about the rDAI concept on their page here.
I choose rTrees as my no-cost charity because of their perfect and smooth web design and my personal desire to help with environmental problems we currently face as humans. I really think that small things have the power to change the entire world.
Steps to test Charity without spending money with rTrees:
1. Log in with your MetaMask to Uniswap https://uniswap.exchange/swap
2. Unlock your ETH and DAI and allow Uniswap to interact with your tokens.
3. Turn your ETH into DAI.
4. Go to the https://rtrees.dappy.dev/ page and activate the plant that suits you the most. They started from as low as 13 DAI – that will give you 10 planted trees per year.
5. Confirm the transaction and… that’s it. You just started to help the planet.
6. Click “Your grove” to see your current progress in planting trees, you can also lock more DAI and power up your planting operation.
Remember that any time you can withdraw your support and get back all the DAI you lock in the first place.
The end! The purpose of this article and my other guest blogs was to show the multitude of experiences and possibilities that the Ethereum network gives us.
