What are a DeFi wallet, passkey, and self-custody?
A DeFi wallet is the account that belongs to you, where your assets are held and where you confirm your transactions in DeFi products. Your wallet is created with your phone's security feature (Face ID / Touch ID), and transactions are signed with the same method (passkey). You do not need to memorize complex secret words (a seed phrase).
What is a DeFi wallet?
Unlike your classic Paribu account, the self-custody wallet you have in DeFi is a structure that keeps your assets directly under your control. A self-custody DeFi wallet is used for your DEX transactions. Once you create your self-custody wallet in DeFi, you do not need to set it up again.
What is a passkey and how does it work?
A passkey is your self-custody wallet's "signing" method. When you confirm a transaction, you use your phone's Face ID / Touch ID features; the transaction is securely signed in the process.
- A passkey is stored securely on your device.
- A transaction can be signed only by you, with your own passkey approval.
- You do not need to memorize a seed phrase (recovery words).
What does self-custody mean?
Self-custody means your asset is held in your own wallet rather than at an institution. In DeFi products your assets are held in your self-custody wallet:
- You have control of your asset; Paribu does not hold your asset.
- Only you can confirm your transactions.
- If you lose access to your device, there is a recovery process to regain access to your wallet.
Important information
- Your self-custody wallet is created and protected with a passkey (Face ID / Touch ID on your phone). For this reason, your phone must support this technology.
- Your assets are held in your own wallet (self-custody).
- Transactions are signed with a passkey; only you can give this approval.
- If you lose your device/access, the recovery process is activated.
Frequently asked questions
Do I need to memorize a seed phrase (24 words)?
No. You create your self-custody wallet with a passkey (Face ID / Touch ID on your phone) and confirm your transactions with the same method. You do not need to memorize recovery words.
Can my wallet be stolen?
Your transactions can be signed only with the passkey on your own phone. If you lose your phone, there is a recovery process to re-establish your access on a new phone by verifying your identity.
Will I open a separate wallet for DEX?
No. A single self-custody DeFi wallet is used for your DEX transactions.
Can I make transactions in DeFi using the Paribu interface without passkey (Face ID / Touch ID) features on my phone?
No, only people whose phones have passkey features can use this interface.
Related articles
- What is DeFi, and how does it differ from classic Paribu transactions? — The definition of DeFi and how it differs from classic Paribu transactions
- How do I start using DeFi products? — Setup steps with KYC and a DeFi agreement
- What happens if I lose my device or access? (Recovery) — The 48-hour wallet recovery process and its conditions
Author:
Paribu