What is a smart contract wallet?
A crypto wallet that interacts with smart contracts is called a smart contract wallet. In other words, these wallets enable different types of activities such as buying or selling tokens, token exchange, dapp interaction, trade, borrow or lend, etc.
Caution
Some of the wallets use smart contract under the hood to send transactions on the blockchain. Many crypto exchanges and other services doesn’t support smart contract transactions. Therefore, make sure your crypto exchange support smart contract transactions while using DeFi wallets or smart contract wallets.
Features of a smart contract wallet
Smart Contract Interaction
User accounts in smart contract wallets usually created/controlled by smart contract, rather than having simple Ethereum account.
Functionalities
Functionalities like borrow and lending crypto assets using different money protocols , token sell, buy, exchange or trading, interactions with different Dapps
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Top smart contract wallets
1. InstaDApp
InstaDApp allows you to borrow and lend using Ethereum and other crypto assets by integrating with different money protocols. In addition, it also integrates with Uniswap exchange, when you can earn by adding your tokens to the liquidity pool.
Features of InstaDapp
- Borrow or Lend, Ethereum or other assets
- Earn by adding liquidity on Uniswap exchange
- Protocol bridge to switch from MakerDao to Compound with one click
- Support Single collateral and multi collateral Dai
- Web wallet with mobile-friendly UI
2. Zerion
Zerion integrates with multiple protocols and enables some core banking functionalities. Other than that, you can borrow, lend, exchange, or invest your assets using it.
Features of Zerion
- Borrow or Lend
- Exchange tokens using Uniswap
- Earn by adding liquidity on Bancor and Uniswap
- Available on the web as well as mobile
- Dashboard to check your assets
- History of your financial interactions
3. Metamask
Other than securing your cryptocurrencies, the Metamask wallet also allows you to interact with different Dapps. For instance, You can use these Dapps to buy, borrow, earn or lend Ethereum and other tokens. You can also use Metamask to trade, swap non-fungible tokens, and play games.
Features of Metamask
- Buy, borrow, lend your assets
- Interact with Dapps
- Token custody
- Available on mobile and as a chrome plugin
Alpha Wallet and Coinbase wallet provide similar functionalities as Metamask.
4. Poketto Cash
Poketto is designed as a payment app using which you can send and request money from anyone. However, it uses xDai to reduce the transaction fee and to enable instant payments. It’s similar to Venmo, and you can assign addresses to your contacts. Poketto is entirely open-source.
Features of Poketto
- Instant payments
- Uses xDAI (A version of DAI stablecoin)
- Assign addresses to contacts
- Available on mobile
5. Argent
Argent provides a free ENS name and covers the transaction fee for all your transactions. Therefore, it is very helpful to send crypto to your friends as every argent wallet gets a readable name.
Other than storing your tokens, you can also buy tokens from Decentralised exchanges using argent.
Features of Argent
- Token custody
- Free transactions
- Free ENS names to simplify addresses
- Buy and sell tokens using Decentralized exchange
- Earn interest by supplying tokens to the Compound protocol
- Available on mobile
6. Braavos
Braavos is a smart contract wallet designed for an intuitive and safe start in crypto.
It has all your DeFi needs, it’s available both on mobile and browsers and has smart contract functionalities that enable a brand new wallet experience.
Features of Braavos
- User-friendly experience
- Multiple ways to buy, sell or transfer tokens
- Swap and stake tokens in the wallet in one click
- Transaction explainer and history
- Interact with dApps straight from your mobile wallet
- x100 cheaper fees than Ethereum / Low fees
- Integrated NFT gallery for image, music, video and 3D
Smart contract wallet Pros and Cons
Pros
- Features like borrow, lend and swap
- Interact with Dapps
- Multi-sig wallet support
- Interact with smart contracts
Cons
- Many exchange do not support transfer recieved to and from smart contract wallets
- Usually support only one blockchain
Conclusion
As the crypto ecosystem will grow, we will see smart contract wallets will more capabilities. For now, most of the wallets only support Ethereum protocol, and it will be interesting to see these wallets supporting multiple smart contract protocols.
Frequently Asked Questions
What is a smart contract wallet?
A crypto wallet that interacts with smart contracts is called a smart contract wallet. In other words, these wallets enable different types of activities such as buying or selling tokens, token exchange, dapp interaction, trade, borrow or lend, etc.
What can smart contracts be used for?
You can use smart contracts for borrow and lending crypto assets using different money protocols, token sell, buy, exchange or trading, interactions with different Dapps.
Does MetaMask support smart contracts?
Yes, you can interact with smart contracts and dapps using Metamask.
Best wallet for Uniswap?
You can interact with Uniswap using Metamask, It’s the best smart contract wallet to interact with Dapps.
