Using the DAI savings rate - Assignment

Defi 101 Course
#192

Thanks @amadeobrands for explaining DeFi to us!

Didn’t know even the Brave Browser before starting in the Academy here, and now I’ve:

  • swapped some ETH into DAI.
    I’ve seen that the cost on oasis is much higher than swapping for example on uniswap, but swapping on uniswap tends to fail if you don’t manually increase the fee. Not very user friendly. Are you guys coming to the same conclusions?

  • lent some DAI on Compound.
    Minting did last an eternity of nearly 30 minutes today, and no, I didn’t lower the gas limit.
    I also intended to try out oasis.app, but when I read “Start earning 0.00% on your Dai today” and deploying proxy costs atm nearly 5$ i’ve stopped here.

… and have 0 interested people in the “real world” to talk to about that :smiley: There should be much more people who introduce others to this argument, especially at school.

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#193

Thanks for sharing this. Much love. :facepunch:

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#194

Isn’t that what Libra trying to do ? Put a bunch of stable coins in a basket ?

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#195

I did some playing around. used a lot of dapps. All they seem to do is get a large portion of your ETH. within a few hours I lost about 0.20 ETH only to gas-fees. Not very stimulating. Waiting times for confirmations are terribly long. I did some borrowing of Dai, with ETH as collateral. I did something wrong so no collateral was created, but the fee was gone - without a warning. I am probably not the smartest one on the block of Defi, but then again, I doubt this is usable for the masses.

All in all a very disappointing trip.

2 Likes
#196

That is indeed a big obstacle preventing Ethereum from mass adaption - user experience. Slow network congestion and high gas fees. It will always be the curse of early adapters have to face. Remember the dial up in the old days? However the advantage of being early is opportunity of high profit.

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#197

Same problem here :tired_face:

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#198

Amadeo thank you for the knowledge and excellent explanations .
Defi space is mind blowing but has so many problems and fees are too much for my standard. So i tried a kovan demo account but after i successfully borrowed dai and put it into savings with some interest, after that it is impossible to make any transactions, it says e.g. not enough balance for gas fees. The other problem is with mkr tools: the price is 342 usdt and everything else is 0. All things considered, i think defi is ahead of its time and DAI should be pegged in future stable **BTC*thx

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#199

I am excited about these recent overviews on these DeFi protocols and I am particularly interested in putting pure automation development behind these concepts. Your demonstration of being able to manipulate the contracts without the aid of the GUI are a perfect segway into creating beautiful user friendly interfaces for the newbies and general viewing public to handle these manipulations manually.

I would like to learn more about the Y.curve.fi application and mapping software bot functions that will auto-magically provide liquidity or borrow from liquidity to yield automatic profitable margin returns on capital the software bot has to trade with. Without all that mucking about in the manusha of trying to configure or calibrate the mechanisms manually to do that.

Could it be possible to bleed this into developing neural networks using Artificial Intelligence to crunch the numbers from these DeFi app’s APIs to obtain the information to build this?

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#200

Since the DAI is tied to the dollar obviously its value drops with the dollar…
That is why it is a stablecoin.
That’s what being a stablecoin means.

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#201

Have you seen Nicholas Merten’s (datadash) new app, digifox? Its a great new DeFi startup with compound and celsius already integrated. I feel like it has big potential because Nick’s a smart and passionate guy, he wants to see mass adoption and this app is a good contribution to that goal.

My idea for a DeFi angle is to try and disrupt the real estate market. I have seen some mentions of real estate in the DeFi space but I would really like to find some ways to cut out the middlemen (estate agencies), using tech and trustless solutions.

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#202

I also agree that the learning curve for new bees are challenging, but the reward of the new knowledge is also appealing for me.

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#203

I had some issue setting up a saving account with compound using DAI tokens. I did not know the user has to pay a gas fee to convert ETH to DAI and a separate gas fee to send it to MetaMask. Too many charges will discourages users and not be apart of DEFI ecosystem. This needs to be stated more clearly and easily to new users. I did lose some ETH due to my lack of knowledge. However, I did learn that most of these DEFI tokens require ETH since they are all on the ETH block chain.

3 Likes
#204

Hi There

I used Aave and Maker to do some trading.

I found two links in the course that no longer work.

Defi Protocol Deep Dive
Link no longer works
https://antoncoding.github.io/opyn-liquidator/

DeFi Protocol Deep Dive
link no longer works
https://oasis.app/save?network=kovan

2 Likes
#205

Hello, guys!

I’m trying to follow the assignment, so I got my eth in metamask in the kovan network.

At this point I go to oasis through the link above but then, on “connect wallet” there is not metamask (there is ledger, coinbase, etc).

So is metamask not available anymore? Am I missing something?
(I’d really like to use a testnet to do my first tests)

Thanks

2 Likes
#206

Hi amando,

a new world for me has opened, very interesting.
For homework i followed this procedure :

  • i installed metamask and added some ETH to it
  • first i looked at https://defiprime.com/defi-rates for best borrow prices
  • compound had best rates 1.63% for borrowing DAI
  • Aave had a saving rate of 6.54% so those 2 Dapps i want to use
  • I used compound to use ETH as collateral to mint DAI
  • Borrow limit is 73% on my ETH
  • i also looked at oasis but the saving rate is at 0% so not a option
  • went to Aave app to deposit the minted DAI to get 6.52% on my deposited DAI

I Think this was the homework assignment.

Thanks for the DeFi wake up call.

4 Likes
#207

The link https://oasis.app/save?network=kovan works for me. However, when I try to connect MetaMask, I get this message:

image

Without Kovan it connects.

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#208

The idea of borrowing for low interest and depositing for high makes perfect sense. What I don’t understand, though, is this - why would we exchange fiat for ETH and then mint DAI, if we can just exchange fiat for DAI? In that case, 100% of our deposit would make interest, not 73%.
If we want to hodl ETH, why don’t we just deposit ETH for interest?
Maybe I am missing a huge point here, please help :smile:

3 Likes
#209

Hi, what i understand is that the advantage is the low rate to borrow (1,63%) versus high rate for saving account and when you use the max ETH collateral 150% you get the maximal advantage. i could not find a saving rate for ETH alone.

Did you mean this ?
RLion

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#210

Had some BAT floating around.
Put it into Compound at 30%
It dropped within minutes to 20%
12 hours later I’m still getting 20% so that’s fun.

I want to do the same but via DigiFox but their app is too buggy at the moment.

Also worth noting, it’ll currently take about a week to cover the eth fees if you deposited $1,000 in BAT.

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#211

I think it’s because you are on the Kovan network via @amadeobrands’ link.

Yep, just tested it. Change your MM to Kovan too:
MM Browser Icon > Main Network > Choose Kovan.

Solved :slight_smile:

Note, you’ll now be paper trading.

1 Like