What it is for

The DeFi Wallet is the non-custodial wallet (also known as "self-custodial") integrated into the Young Platform app. It is used to do what the Young Wallet cannot do: operate directly on the blockchain and access DeFi protocols such as lending, borrowing or tokenised instruments. Since it is non-custodial, your crypto keys are on your device and Young Platform does not act as an intermediary. It is an extra option, not a replacement: the Young Wallet continues to work as before.

Accessing DeFi protocols

The DeFi Wallet initially allows you to perform swaps and access lending protocols, through which you can accrue rewards. In the following months, the offering will be enriched with additional DeFi features, including borrowing and tokenised instruments.

What you can do

From the DeFi Wallet you can deposit your stablecoins (USDC and EURC) on the integrated lending protocols and open a position that accrues a yield, without using an external app. For example, by depositing USDC on the Aave protocol you obtain an average annual yield of 3.5%. At launch, lending protocols are available; others will be integrated progressively.

Young Platform gives you access and an interface: it is not a counterparty to the transaction, does not manage your funds and does not establish or guarantee the yield, which is determined by the protocol, varies continuously and is not guaranteed. From the Young Wallet, on the other hand, DeFi protocols are not accessible. To understand how a position works and what it involves, read the guide on Lending and yields in the DeFi Wallet.

Sending and receiving crypto from any wallet

From the Young Wallet you can send and receive only to external wallets of which you are the owner and only for the cryptos listed on Young Platform. From the DeFi Wallet you can receive crypto from any self-custodial wallet on the Ethereum network and send them to any address, even one registered to another person. You can also receive and store stablecoins and crypto that Young Platform does not support. Operations remain subject to anti-money laundering regulations. Young Platform reserves the right to carry out further checks in the event of anomalies or relevant risk profiles.

Exchanging one crypto for another at low cost

The Swap function allows you to carry out direct conversion between two cryptocurrencies on the blockchain, avoiding the step into euro and without any intermediation by the Young Platform platform. The costs involved include network fees, always shown on the preview screen, and any: provider fee and a service fee. For more information, see the DeFi Wallet Fees page.

Moving funds between the two wallets

Both wallets coexist in the same app and you can move crypto from one to the other depending on what you want to do: on the Young Wallet to buy and sell in euro, use Staking and Moneyboxes; on the DeFi Wallet to operate on-chain. Only cryptos supported by both wallets are moved, and each step is a transaction on the blockchain with its network fee.

Stablecoins follow a different rule. USDC and EURC that you already own cannot be moved between the two wallets, neither from the Young Wallet to the DeFi Wallet nor vice versa: for regulatory reasons (MiCAR) they remain in the wallet where they are located. However, you can make a different choice at the time of purchase.

When you buy stablecoins (USDC or EURC) with Euro you can decide which wallet to credit them to: Young or DeFi. If the purchase starts from the DeFi Wallet, from the Add funds section, the credit takes place directly there. In practice: if you want to use stablecoins in the DeFi Wallet, for example for lending, buy them from the DeFi Wallet; the ones you already have on the Young Wallet remain available for sale in euro or for exchange with other crypto. From the DeFi Wallet, stablecoins can still be sent and received from any other self-custodial wallet.

Who holds the keys and what changes from a regulatory standpoint

In the Young Wallet, the wallet keys are kept by Young Platform: if you lose your account password you reset it and find everything. In the DeFi Wallet the keys are yours, protected by the wallet password that only you know: no one, not even Young Platform, can move your crypto or recover access if you lose the password. For this reason, we ask you to save it and enable backup on Google Drive.

Furthermore, the Young Wallet is a custody service regulated by MiCAR, as part of Young Platform's authorisation as a crypto-asset service provider (CASP). The DeFi Wallet is outside that perimeter: it is not a custody service, does not have the safeguards provided for regulated services, and there is no deposit guarantee or compensation system. In the app you can distinguish them by the CUSTODIAL and SELF-CUSTODIAL badges. The differences are explored in depth in the guides "Custody and self-custody" and "The risks of the DeFi Wallet".

What it does not do

The DeFi Wallet is not a protected deposit account: protocol yields are variable and not guaranteed, and capital is exposed to protocol risks and euro/dollar exchange rate fluctuations. For greater visibility on risks, consult the Information Notice. For more information on the service, consult the Terms and Conditions.

The DeFi Wallet is a non-custodial service and does not fall within the perimeter of regulated services pursuant to the MiCA Regulation for which Young Platform is authorised. Young Platform's CASP authorisation does not cover or guarantee in any way the DeFi Wallet and third-party protocols accessed through this feature: the user independently manages their private keys and is solely responsible for related operations and associated risks. Consult the DeFi Wallet Terms and Conditions for more information.