Staking money Legos to build a DeFi combo structured out of sheer code is something very few people amid the DeFi world consider an easy thing to do. Furucombo is a brand-new DeFi platform seeking to turn complex decentralized finance operations into a user-friendly dashboard with buttons to create financial operations using a drag-and-drop builder tool.
Even though the platform is still running beta software, and beginners must proceed with caution, as this naive-looking sandbox interface can hide potential risks associated with wrong stacks.
How Does Furucombo Work?
Furucombo is a decentralized application where users can build customized DeFi Legos and unite different strategies into one transaction for potential profits.
The process is straight and simple. Users access the app interface, choose a DeFi protocol, and set up the inputs. Then, it is possible to add another protocol of choice or send the transaction right away.
To rearrange the order of previous actions, all the user needs to do is drag a cube. When the cubes are finely arranged and the transaction is ready to go, the user just needs to connect his wallet and hit the “Send” option.
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The app plays an important role in the current DeFi scene. Most people investing in cryptocurrencies today have plenty of knowledge about financial concepts and how to reap the most out of transactions. However, these individuals are still not IT-savvy enough to leverage all these functionalities, as they cannot code and build custom transactions across different blockchains.
Furucombo solves this issue by allowing its users to bundle transactions to create meta-transactions, which have multiple transactions inside them. The easy to use dashboard of the app makes such procedures almost instantly, requiring just a couple of clicks on the mouse to turn three operations into a single empowered transaction.
Users have almost endless possibilities, such as setting up a decentralized ETF (Exchanged Traded Fund), build a unique passive income stream, or even execute a flash loan for arbitrage.
Dig Into It
To access Furucombo there is no need to know how to code. The app turns complex DeFi protocols into simple cubes, so users just need to enter specific inputs and outputs and set up orders for these cubes.
Each cube is called a Combo, as the name of the app suggests. When the cubes are structured and completely set up, the app will package all of them into a single transaction and send it out, which allows users to cross-chain exposure for potential gains.
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Investors start by sending crypto assets from their wallets into the app. These initial funds can consist of several tokens, but the user necessarily has to use only assets he has on the wallet. For instance, let us say someone wants to supply Compound pools with ETH and USDC to earn interest. Then, this fictional user has to add both tokens as initial funds, otherwise, the transaction will not be completed.
Creating a combo is also easy, as the user just needs to select the “+” option to add DeFi protocols into the combo’s mix of transactions. Options include Uniswap v1, Compound, Aave Protocol, MakerDAO, and Kyberswap, just to name a few. So far, MetaMask is the only supported wallet for transactions.
Handle With Care
So far, we haven’t heard about significant drawbacks or trade-offs related to Furucombo’s customers. However, it is still running beta software, which means high instability. As users are pretty much on their own risk, it is not recommended to transact through the application using large amounts of capital before its full version goes live definitely.
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New users can also become entranced by the UI’s ease-of-use, without digging deep to know what these advanced transactions require to become a reality. This abstraction-prone behavior regarding financial engineering and underlying mechanisms behind the DeFi stage has the potential to create problems in the future.
Although Furucombo makes high-yield returns and fusing flash loans seem like a Saturday in the park, all these operations remain complex to its grassroots, especially if we take into consideration the decentralized finance ecosystem where it is all happening together.
A unique idea on its right, Furucombo aims to turn all complexities associated with DeFi financial operations more “palatable” for non-technical users.
By allowing people to build money Legos using a drag-and-drop system, the app makes it easy to bundle transactions to create meta-transactions involving multiple DeFi profitable tools.
So far, it is running beta software, so it is highly recommendable to avoid putting larger amounts of assets in this game, which is still highly unstable and exposed to risks (given the complexity of the decentralized transactions).
It seems that the idea won’t be a “beginner-core” tool as some may think it will, instead of developing into a more financial-savvy platform where battle-tested crypto traders will leverage their DeFi capabilities using a smooth UI app.