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These terms and conditions describe the conditions of use of the El Dorado Gana product on the El Dorado platform (“SuperApp”), a relationship between you (“User”) and any holding company, subsidiary, or entity belonging to the El Dorado group of companies (“El Dorado”). Hereinafter, we will refer to each separately as a “Party,” when we refer to the two together, we will refer to each other as the “Parties.”
You express your consent and acceptance by using the product and by electronically and expressly accepting these terms and conditions. You also agree that these terms and conditions may be updated or modified without prior notice.
If you do not agree to the terms and conditions of use, you cannot access this site or use the service El Dorado offers.
El Dorado Gana may contain third-party features and/or services governed by separate terms and conditions. You agree and acknowledge that you have read and accepted such third-party terms before using any El Dorado Gana Platform services.
1. Definitions
1. APY: Figure representing the actual amount of interest generated on investments and savings
2. Wallet: A crypto wallet is a software or physical device that allows users to store, send, and receive crypto assets.
3. Earnings: This refers to the rate of return an investor can expect to earn from their investments in crypto assets or DeFi products. The yield is typically expressed as an annual percentage, known as the Annual Percentage Rate (APY).
4. Digital Asset Exchange ("Swap"): A procedure that allows one cryptocurrency to be exchanged for another within the same blockchain or between different cryptocurrencies directly and rapidly, leveraged on Smart Contracts. This definition includes the definition of Bridge, which consists of a procedure allowing cryptocurrency exchange from one blockchain to another.
5. Applicable Law: Means any laws, statutes, regulations, ordinances, treaties, guidelines, policies, and laws issued by any governmental or regulatory authority of El Salvador.
6. Peer-to-peer (P2P): Peer-to-peer (P2P) refers to the technology and processes that enable the direct transfer of digital assets between two parties without the intervention of a centralized intermediary.
7. Platform: El Dorado APP
8. Available Protocol(s): Any software and/or code, including but not limited to smart contracts, wallets, DeFi Protocols, DEX Aggregator Protocols, or any other similar protocol built on a compatible blockchain network.
9. Blockchain networks: Blockchain networks are digital infrastructures that enable the creation and maintenance of immutable records of transactions.
10. Self-Custodial Wallet: Digital wallet in which only the holder owns and controls the private keys. As a User, you are solely responsible for the security and access to your assets.
11. USDT: Tether is a stablecoin widely used in the crypto asset ecosystem. It is linked to the value of the US dollar.
12. Yields Refer to the profits generated from investing in digital assets. In other words, users can deposit their assets and receive interest or returns, denominated in tokens or crypto assets, as a return on participation.
2. What is El Dorado Gana?
El Dorado Gana is a SuperApp product consisting of an intermediation service whose sole purpose is to facilitate the User's transfer of resources to the available Protocols by providing them with a Self-Custodial Wallet that connects with the available Protocols to generate profits or through which the User can make exchanges or Swaps of their tokens.
The Self Custodial Wallet allows users to connect with available Protocols and perform Swap operations. The above, to the extent that this is a product that will be leveraged from a commercial alliance through which El Dorado intermediates to offer third-party Protocols where the user can enter their USDT or stablecoins into the decentralized wallet so that they can obtain profits or third parties. that facilitate the realization of Swaps.
Our product allows you to exchange your stablecoins for other cryptoassets which may have different characteristics, depending on the Protocols to which they belong.
The latter is done through a specific mandate contract (“Mandate”) to issue orders; an agreement is established that allows El Dorado to carry out one or more operations on your behalf and follow your instructions in detail. This includes adopting all the necessary measures to carry out the Swap, which may imply that by clicking accept, this constitutes the main order regulated by this contract.
Additionally, it means that El Dorado will never be able to use the resources at its discretion. We will only help you access protocols or tokens if you wish, facilitating the exchange of Stablecoins and being providers of the Self Custodial Wallet.
Backup of the Account:
Account backup will be done by generating a private key in encrypted form in cloud storage services, such as Google Drive. This method ensures that the private keys are safe and accessible only to the user, allowing account recovery in case of device loss.
If the user loses all his devices, he can recover them by downloading the encrypted file from a cloud service (Google Drive). This file will allow the signing of a new transaction to add a new device to the smart contract, thus reestablishing access to the account.
Thus, through this contract, El Dorado carries out the following tasks (also understood as “the service(s)”):
1. Receive the funds, i.e., the stablecoins, agreed upon by the parties.
2. Carry out the necessary activities so the stablecoins can be sent to the Protocol of your choice and their withdrawal when you wish.
3. Exchange Stablecoins with El Dorado as a market maker or a third party with the Stablecoins necessary to access the Available Protocols.
In other words, our business alliances allow you to access third-party services. These opportunities are at your fingertips!
3.What is the relationship between El Dorado and the third party providers?
Thanks to El Dorado, you can access new third-party services or Protocols.
However, you should be aware that El Dorado has no control over these Protocols, external websites, features and their content.
El Dorado is not responsible for any of these Protocols, which are linked from the El Dorado website, regarding the information, opinions expressed, advice or statements, advertising material, accessibility, or any possible consequences of using these third-party sites, such as damages, losses, failures, and problems.
You, as a user, allow El Dorado to exchange a stablecoin held in your El Dorado wallet for the selected token through this service. However, El Dorado functions solely and exclusively as a communication bridge for you to acquire the token; BUT REMEMBER THAT EL DORADO HAS NO INFLUENCE WITH THE TOKEN!
Each Protocol and/or token has separate terms of use and policies.
Therefore, before entering the Protocol or performing a swap, you must review its policies, rules, terms, and regulations, and you are solely responsible for taking the necessary precautions to ensure that you are happy to use such a service offered by a third party.
You do not need to create a separate account from your El Dorado account. The El Dorado Gana product is within your account. You only need to accept the creation of the Self Custodial Wallet and the specific Mandate contract, select the protocol you wish to connect it to, and we will provide you with access to it.
You can make deposits using the payment methods available at El Dorado, and thanks to our partners' connections, you'll be able to see the daily earnings associated with each of the products these third parties offer, if applicable. In your balance, you'll see your available balance, taking into account the profit or loss results of the Tokens you exchange or the Protocols you connect to. Remember that the minimum deposit amount is equivalent to 20 USDT.
To carry out this process, you must issue an instruction indicating the order to deposit funds into a protocol or exchange one token for another. The instruction issued through the platform must include all the information required to carry out the process (the instruction is generated upon acceptance of the specific Mandate contract). Additionally, we will help you gather as much information as possible so that you can make your decisions in the most informed manner. However, this does not mean that the information presented is under our control. ALTHOUGH WE WILL ENDEAVOR TO KEEP IT UP TO DATE, IT WILL BE YOUR SOLE RESPONSIBILITY TO MAKE THE DECISION TO DEPOSIT FUNDS INTO A THIRD-PARTY PROTOCOL OR EXCHANGE ONE TOKEN FOR ANOTHER.
Based on the information contained in the instruction, El Dorado will execute the swap and subsequently place funds in the Protocol, or it will swap one token for another. If El Dorado is unable to complete or partially place the funds for any reason attributable to the third party, it will notify you as soon as possible.
In any case, the Parties declare that they accept and understand that El Dorado will not be liable for any penalty, additional cost, fine, or damage that may be caused as a consequence of a total or partial placement that could not be carried out or cannot be carried out on time due to errors in the Information contained in the instruction or for reasons beyond El Dorado's control and attributable to the third-party owners of the Protocols.
You must locate the Withdraw button within the product and indicate the amount you wish to withdraw. Please note that the minimum withdrawal amount is the equivalent of 10 USDT, and the corresponding commission value will be additionally deducted.
It's important to keep in mind that the characteristics of the available protocol or token vary, and therefore, before accepting any offer, you must understand the specific service being offered. For example, some will have different earnings, timescales, settlement times for the underlying crypto asset, volatility, etc.
El Dorado clarifies that when withdrawing stablecoins, you have complete freedom and autonomy to decide what to do with them. You are in no way obligated to settle them in fiat with El Dorado or with a third party designated by us.
We want you to be calm because we care about preventing money laundering and terrorist financing risks. To see our policies, you can consult our general terms and conditions, which are available here: El Dorado P2P Terms and Conditions.
What applies to compliance will also apply to the El Dorado Gana product.
For the Intermediation Service you are accessing, we may charge a stablecoin intermediation fee, the specific percentage or amount of which will be disclosed to you as you navigate the SuperApp prior to entering into a transaction.
Please note that each Protocol is an independent service from El Dorado owned by a third party. THEREFORE, EL DORADO IS NOT RESPONSIBLE FOR THE ACTIVITIES THAT OCCUR IN THE PROTOCOL. We allow you to access that Protocol, but we do not control it, so we have no activity or responsibility for it.
Therefore, El Dorado is not responsible if for any reason our tool does not allow you to access the Protocol or perform the Swap.
If you need any help with the Platform, you can send us a communication to soporte@eldorado.io indicating the problem, and we will do our best to help you solve it.
El Dorado is not responsible for any damage, harm, or loss caused by failures in the Platform arising from the server or the Internet. El Dorado will also not be responsible for any virus that may infect the Users' equipment due to access to or use of the Platform or any transfer of data, files, images, texts, or audio contained therein. El Dorado does not guarantee continued or uninterrupted access to and use of the Platform.
The Platform may occasionally be unavailable due to technical difficulties, Internet failures, or any other reason; in such cases, an attempt will be made to restore it as quickly as possible without any liability being attributed to El Dorado. El Dorado will not be liable for any errors or omissions made by Users within the Platform.
1. Security: Users are responsible for maintaining the security of their devices and private keys. This includes, but is not limited to:
2. Use strong and unique passwords to access the El Dorado App.
3. Ensure your devices are protected from malware and other cyber-attack types.
4. Make the backup indicated by the El Dorado Gana product in the cloud (Drive). If you lose your device, you can only access it through this backup.
5. You must understand that El Dorado is not a party to any transaction on the blockchain networks underlying the available Protocols; WE DO NOT HAVE POSSESSION, CUSTODY, OR CONTROL OVER ANY CRYPTOASSET OR ANY USER'S FUNDS.
6. You understand that when you interact with the available Protocols, you always maintain control over your crypto assets.
7. Legal Compliance: Users must comply with all laws and regulations applicable to using El Dorado Gana and the El Dorado Platform in general.
8. Due Diligence: Users should conduct their own research and due diligence before using the Self-Custodial Wallet and connecting to the available Protocols. This includes, but is not limited to:
9. Responsible Use: Users must use the Wallet responsibly and ethically. This includes, but is not limited to:
10. Users are responsible for staying continuously informed about any updates, modifications, or changes related to the tokens available on the Platform, as well as the protocols associated with such virtual assets. This includes, but is not limited to, changes in their terms of use, technical characteristics, associated risks, operational restrictions, and other relevant aspects necessary for their proper management.
Accordingly, El Dorado shall not assume any responsibility for the lack of individual or direct notification regarding such updates, as it is the sole responsibility of the Users to consult and verify this information independently and on a regular basis.
We care about the security of your account and offer you a way to back up your El Dorado Gana product:
1. Cloud Backup: Recovery Phrase Encryption: Use a Google Drive backup account to encrypt your recovery phrase before uploading it to the cloud.
2. Cloud Storage: Storage is automatically generated in the selected cloud.
1. Security and Data Protection: El Dorado is committed to implementing appropriate security measures to protect users' personal and financial data. This includes using encryption technologies and other security practices to prevent unauthorized access.
2. Transparency and Communication: The Company is committed to providing clear and transparent information about the operation of the Self-Custodial Wallet, including any changes to the terms and conditions, privacy policies, and applicable fees. The Company will notify users of any critical updates through established communication channels.
3. Technical Support: The Company will provide technical support to users to resolve issues related to using the Self-Custodial Wallet. This includes troubleshooting and answering general queries.
4. Service Integrity: The Company is committed to maintaining the integrity and availability of the Self-Custodial Wallet, performing necessary maintenance and updates to ensure its proper functioning. In the event of service interruptions, the Company will endeavor to restore the service as quickly as possible and minimize any inconvenience to users.
5. Legal Compliance: The Company will comply with all laws and regulations applicable to the operation of the Self-Custodial Wallet and the management of cryptoassets under Applicable Law. This includes cooperation with authorities in the event of legal investigations and implementing measures to prevent illegal activities, such as money laundering and terrorist financing.
6. Limited Liability: Although El Dorado strives to provide a safe and reliable service, it will not be liable for any loss or damage resulting from events beyond its control, such as technical failures, cyber-attacks, or user investment decisions.
7. Due to the technology's non-custodial and decentralized nature, we are not a broker, agent, advisor, or custodian. We have no fiduciary relationship or obligation to you regarding any other decisions or activities you make when using our Services.
8. You acknowledge that we only have information about some transactions on the Available Protocols beyond what is publicly available through the Blockchain. However, we may collect information about users of the Services by our Privacy Policy.
El Dorado will not be liable for any loss or damage arising from using the Protocol, including, but not limited to, losses resulting from user errors, technical failures, or fraudulent activities.
You acknowledge that we have no control over the Protocols available beyond what is publicly available through the Blockchain. However, we may collect information about users of the Services by our Privacy Policy.
13. Can El Dorado cancel or suspend your Wallet in El Dorado Gana?
The provisions of the General Terms and Conditions of the Platform will apply. Additionally, if the user's account on the Platform is canceled or suspended, they will not be able to use their funds in Dorado Gana.
14. What do you do if you have a complaint?
Any complaint related to the Platform Services may be filed through the El Dorado website using the complaints and claims button.
Upon prior identification, users or a third party representing them may submit direct claims free of charge.
El Dorado will register and individualize the claim by assigning a number to your claim, which we will inform you of through any appropriate communication channel.
El Dorado may transfer the PQRSDF to a third party when it concerns information or service not provided directly by El Dorado.
If the response corresponds to El Dorado, we will respond within fifteen (15) business days of receiving it.
15. How do we protect Intellectual property?
The Platform, its solutions and designs, graphics, texts, images, distinctive signs, source code, object code, and other content to which you have access are the property of El Dorado and are protected by intellectual and industrial property.
Access to the Platform granted by El Dorado does not imply any transfer of industrial property rights and/or copyright over the Platform. You must refrain from modifying, disassembling, decompiling, or reverse-engineering the Platform; if you do so, you will indemnify El Dorado for any damages this may cause.
16. How will we handle your personal data?
During the execution of the Services, El Dorado will ask you for certain personal data, for which you must accept El Dorado's personal data processing policy, available at:
El Dorado is committed to complying with data protection regulations, especially the Applicable Law.
17. How long does this Agreement last, and when can it be terminated?
This Agreement will remain in effect as long as you use the Services. If you wish to terminate it, you must stop using the Services and cancel your account on the Platform, and if you want us to delete your information from our database, you must send us a communication stating this. In any case, we cannot delete some of your personal data due to legal requirements.
El Dorado may only provide its Services to you and suspend your access to the Platform if you comply with these terms and conditions or if It determines that you do not comply with its security policies.
18. What law will apply to this agreement?
The Applicable Law of El Salvador governs this agreement.
19. Where will the Parties receive notifications?
You will receive notifications to the email or cell phone number you registered in the registration form.
El Dorado will receive notifications at soporte@eldorado.io.
20. How will we resolve disputes arising from this Agreement?
When there is a dispute between El Dorado and You about this Agreement, it will be subject to a direct settlement phase between El Dorado and You for thirty (30) calendar days counted from the notice of the existence of the dispute by one of the parties to the other.
After thirty (30) calendar days have elapsed without reaching an agreement, the controversy will be resolved by the judges of the ordinary jurisdiction of El Salvador.
21. How are these Terms and Conditions modified?
Any modification, update, or adjustment to the service conditions will be duly notified to the User through the application, also referred to as the Platform.
The User accepts and acknowledges that it is their responsibility to periodically review the application to stay informed of such changes. Continued use of the Platform, or explicit acceptance within it, shall be understood as full and binding acceptance of the new service conditions.
These Terms and Conditions and any annexes to them shall prevail over any other prior agreement, verbal or written, concerning the subject matter of the Agreement. Any matter not provided for in these terms and conditions, the provisions of the general terms and conditions of the Platform will apply.
ANNEX A
Available Protocols and Tokens
FIRST.
General Description :
WBTC, or Wrapped Bitcoin, is a token representing Bitcoin (BTC) on the Ethereum blockchain. Its primary purpose is to allow Ethereum users to use Bitcoin's value in decentralized applications (dApps), such as decentralized exchanges (DEXs) and decentralized finance (DeFi) platforms.
Main Features:
Security and Compliance:
○ Custody Backing: The Bitcoin backing each WBTC is held by certified trusted companies, such as BitGo, with robust security protocols to protect digital assets.
○ Regular Audits: Bitcoin reserves undergo regular audits to ensure that BTC is backed 1:1 for every WBTC issued. This provides transparency and trust to users.
○ Secure Transactions: Being based on the Ethereum blockchain, WBTC transactions benefit from the inherent security of the Ethereum network, protecting assets from tampering.
Issuance Process:
○ When a user wants to obtain WBTC, they send their Bitcoin (BTC) to an authorized custodian, such as BitGo.
○ The custodian verifies the transaction and, once the BTC is received, issues the equivalent amount of WBTC on the Ethereum blockchain at a 1:1 rate.
Swaps:
○ The reverse process is also available: users can redeem WBTC for BTC. To do so, they send their WBTC to the custodian, who destroys (burns) it and releases the corresponding BTC to the user.
ERC-20 standard:
○ WBTC is a token based on Ethereum's ERC-20 standard. This means that it can be used on any dApp and platform that supports ERC-20 tokens, including decentralized exchanges (DEXs), lending platforms, and other DeFi applications.
Custody and Security:
○ The BTC backing WBTC is stored in a secure wallet by the custodian, which uses multiple layers of protection, including cold storage techniques, to mitigate the risk of loss or theft.
Interoperability:
○ Although WBTC is primarily designed for the Ethereum blockchain, its nature as an ERC-20 token allows it to be used on other Ethereum-based platforms and projects, as well as in interoperability solutions that allow transfer to other blockchains.
Governance
The smart contracts that create wBTC are controlled by a DAO, which is made up of custodians, merchants, and certain institutions. The DAO makes common decisions, such as making changes to the smart contract that mints wBTC or adding or removing members.
Initially, the DAO consisted of 16 members, including all custodians and merchants, as well as other entities such as MakerDAO, Blockfolio, Gnos, or Loopring.
Associated Risks:
When considering the use of WBTC (Wrapped Bitcoin), it is important to recognize that, like any asset in the cryptocurrency world, it can be subject to certain risks. However, WBTC has been designed with a focus on security and transparency, backed by trusted custodians and regular audits. This helps mitigate many of the associated risks and provides a solid framework within which users can operate.
Below, we want you to understand some of the risks of interacting with WBTC. We aim to provide a balanced view that helps users make informed and conscious decisions.
● Loss of Assets: By relying on custodians to hold BTC, there is an inherent risk that such custodians may experience a hack or failure of their security systems, which could result in the loss of assets.
● Dependency on Central Entities: WBTC relies on custodians and central entities that manage the issuance and redemption process, which can introduce vulnerabilities and points of failure.
● Regulatory Compliance: As WBTC is a Bitcoin and Ethereum-pegged product, it is subject to an evolving regulatory environment. Any changes in regulations could impact its operation or availability.
● KYC/AML Policies: Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements may limit access to WBTC for some users.
● Smart Contract Issues: WBTC operates through smart contracts on the Ethereum blockchain. If there are errors in the code of these contracts, they could be exploited, leading to asset losses.
● Network Risks: Ethereum network congestion or technical issues can slow down transactions or make them more expensive, affecting the usability of the token.
● Volatility: Although WBTC is designed to maintain a 1:1 value with BTC, the market price can fluctuate due to supply and demand across exchanges, which may result in temporary differences in value.
● Use on Other Blockchains: If WBTC is used on other networks or platforms through interoperability solutions, additional risks are associated with those bridges' security and operation.
Benefits for Consumers:
SECOND.
General Description :
WETH is an ERC-20 token on Ethereum that represents 1 Ether (ETH). ETH is used to pay for transactions on the Ethereum blockchain. For example, swapping between crypto assets on an Ethereum-based DEX will cost a small amount of ETH. The two main differences between WETH and ETH are that WETH cannot be used to pay for transactions, and ETH is not an ERC-20 token. The next section will explain why there is a need to make an ERC-20-compatible version of ETH.
Main Features:
● ERC-20 Token: WETH is a token based on Ethereum’s ERC-20 standard, meaning it can be easily integrated into a wide range of dApps and protocols within the Ethereum ecosystem.
● Ether Conversion: WETH allows users to convert their Ether (ETH) into a token that can be used on DeFi platforms, decentralized exchanges, and other applications that require the ERC-20 format.
● 1:1 Value with Ether: Like WBTC, WETH is backed 1:1 by actual Ether. This means that every WETH issued has an equivalent amount of ETH in escrow.
● Use in Decentralized Finance (DeFi): WETH is widely used in DeFi platforms for lending, staking, yield farming, and other financial services, facilitating access to a variety of investment opportunities.
● DEX Support: As an ERC-20 token, WETH can be easily traded on decentralized exchanges (DEXs), allowing users to trade without the need for a central intermediary.
● Liquidity Staking: WETH can be used in liquidity pools to provide liquidity to markets, which can result in rewards for liquidity providers.
● High Security: Being built on the Ethereum network, WETH benefits from the security and robustness of its blockchain, making it a reliable option for users.
Security and Compliance:
○ Audit and Transparency: Platforms that manage WETH typically implement regular audits to ensure that the amount of WETH in circulation matches the amount of ETH in custody, increasing transparency and trust.
○ Use of Smart Contracts: WETH operates through smart contracts on the Ethereum blockchain, allowing the automation of functions such as converting ETH to WETH and vice versa securely and without human intermediaries.
○ Ethereum Blockchain Security: Being an ERC-20 token, WETH benefits from the inherent security of the Ethereum network. This network has proven to be robust and resistant to attacks, providing a solid defense against vulnerabilities.
○ Cold Storage: Many custodial platforms that handle ETH backing use cold storage methods, where assets are kept offline, protecting them from hacks and unauthorized access.
○ Decentralization: WETH enables participation in a decentralized ecosystem, meaning users can interact with multiple applications without relying on a single centralized entity, reducing risks of single control or failure.
○ Minimal Operational Disruption: WETH’s infrastructure is designed to be resilient and to continue operating without interruption, minimizing the risk of downtime and providing continuous service to users.
○ Access to Audit Reports: Some platforms that issue WETH offer public access to audit reports, allowing users to verify the strength and security of WETH backing.
Regulatory Compliance
● Regulatory Compliance: Platforms that issue and manage WETH typically strive to comply with local and international regulations applicable to cryptocurrencies, including securities regulations and anti-money laundering (AML) laws.
● KYC (Know Your Customer) Process: Many platforms that operate with WETH implement KYC procedures, which require users to verify their identity before engaging in certain transactions. This helps prevent misuse and comply with regulatory requirements.
● Audits and Reporting: WETH issuers are typically subject to external audits that ensure transparency and integrity of business practices, which may include regulatory compliance monitoring.
● Collaboration with Regulators: Platforms that manage WETH frequently work with regulatory agencies to ensure they comply with new legislation and guidelines that arise in the cryptocurrency space.
● Security Best Practices: By adhering to security standards and operating procedures recommended by regulatory bodies, WETH and its associated platforms enhance their regulatory compliance and user protection.
● Accountability Framework: The organizational structure of platforms issuing WETH typically includes compliance teams responsible for ensuring all operations follow relevant guidelines and laws.
● Transaction Transparency: WETH operates on the Ethereum blockchain, meaning that transactions are public and can be audited by anyone. This transparency is an important aspect of compliance and building trust.
● Education and Awareness: Some platforms also commit to educating their users about regulations and regulatory practices in the cryptocurrency space, helping them better understand their obligations and rights.
WETH Issuance Process
Ether Conversion: To issue WETH, a user must send their Ether (ETH) to a smart contract designed specifically for this purpose. This process is simple and automated.
Transaction Authorization: The user must first authorize the transaction from their digital wallet, allowing the smart contract to handle the ETH on the user’s behalf.
WETH Issuance: Once the smart contract receives the ETH, it automatically issues the same amount of WETH to the user. For example, if a user sends 1 ETH, they will receive 1 WETH in return.
Associated Risks:
When considering the use of WETH (Wrapped Ether), it is important to recognise that, like any asset in the cryptocurrency world, it can be subject to certain risks. However, WEth has been designed with a focus on security and transparency, backed by trusted custodians and regular audits. This helps mitigate many of the associated risks and provides a solid framework within which users can operate.
Below, we want you to understand some of the risks that may be present when interacting with WEth. In doing so, we aim to provide a balanced view that helps users make informed and conscious decisions.
● Smart Contract Risks: As WETH operates through smart contracts, there is a risk of code errors, vulnerabilities or bugs that could be exploited by malicious actors, potentially resulting in the loss of funds.
● Ether Volatility: Although WETH is backed 1:1 by Ether (ETH), the price of ETH can be very volatile. This means that the value of WETH can fluctuate significantly based on market conditions, potentially affecting users who wish to convert their WETH back to ETH.
● Dependency on the Ethereum Blockchain: WETH is subject to the conditions and performance of the Ethereum network. Congestion, high gas fees, or technical issues on the network may affect the usability and speed of WETH transactions.
● Custody Risks: Although the process of issuing and burning WETH is automated, there are risks associated with managing the smart contracts and platforms that offer this service. If a platform is hacked or otherwise compromised, WETH users could be at risk.
Benefits for Consumers:
● Interoperability: WETH enables Ether (ETH) users to seamlessly interact with the Ethereum ecosystem, which includes a wide variety of decentralized applications (dApps) and decentralized finance (DeFi) platforms.
● Access to DeFi: Consumers can use WETH to participate in DeFi services such as lending, trading, and yield farming, taking advantage of opportunities to earn returns on their assets.
● Easy Conversion: Converting ETH to WETH is quick and easy, giving consumers flexibility to use their Ether in different applications without additional complications.
● Stable Value: WETH is designed to maintain a 1:1 value with ETH, providing users with confidence that their digital asset is equivalent to and backed by real Ether.
● Fast Transactions: As an ERC-20 token, WETH enables fast transactions within the Ethereum network, facilitating real-time trading and use of services.
● Liquidity Provision: Users can provide liquidity to liquidation pools using WETH, which can generate rewards and contribute to the ecosystem.
● Investment Diversification: By using WETH, consumers can diversify their investment portfolio while still being exposed to the value of Ether, allowing for greater flexibility in their investment strategies.
● Use on Decentralized Exchanges (DEX): WETH is widely accepted on DEXs, giving consumers the option to trade without the need for centralized intermediaries.
● Transparency: Being based on the Ethereum blockchain, all transactions with WETH are transparent and traceable, allowing users to verify the chain of custody of their asset.
THIRD.
Overview:
Aave is a decentralized finance (DeFi) protocol based on blockchain technology that allows users to lend and borrow crypto assets without traditional intermediaries. It operates through smart contracts that automatically manage user-supplied funds in a common liquidity pool.
Users who wish to borrow must deposit collateral as a guarantee, in accordance with protocol rules.
Key Features:
USDT as the Asset Used:
Decentralized Governance:
Interoperability:
Security and Compliance:
How USDT Works:
Associated Risks:
Benefits for Consumers:
SECOND. Identification of the Associated Crypto Asset
Overview:
USDT (Tether) is a stablecoin pegged to the U.S. dollar (1 USDT ≈ 1 USD), issued by Tether Limited. It is widely used in the crypto ecosystem for its stability, liquidity, and utility in trading and DeFi platforms like Aave.
Key Features:
Security and Compliance:
Regulatory Compliance:
Issuance Process:
THE LATINO DREAM:
El Dorado Dollar Dream $