Using the DAI savings rate - Assignment

[Cryptofuture]

I got some interest for staking DAI on binance which was good for a short period of time.

[amadeobrands]

@Guilherme_Freitas

Hi!!
I must confess it’s quite interesting to see how you can so easily lock funds and borrow assets with zero bureaucracy!
I played around in kovan network for a while until I found myself “safe” enough to lock a bit of USDC I had in my mainnet wallet. Doing that from my hardwallet using metamask as a “bridge” was also very interesting.
While checking the available interest rates, I found quite discrepant values. Ratings floating from nearly 0% to more than 11% to lock USDC, for example. Would these “messy” values be related to the Harvest Finance hack that has just happened or it’s usual to find so different rates? In case it’s usual, what are the risks that could justify those rates?
Thank you all in advance for some hint on that!

It is demand VS supply … in some cases when they want to increase borrow rates they will lower fees … when people borrow to much fees go up

[RedHorse]

@cryptophile

Unfortunately this seems to be a rather fruitless exercise at the moment as even the Kovan testnet version of Oasis has a 0% interest rate.

I agree, what is with this? @amadeobrands have I missed an explanation for the 0%? I have claimed some KETH from the faucet and can only seem to generate DAI by borrowing on the testnet through oasis.app/borrow?network=kovan . Is this now the same as minting since the SCD shutdown? I see that going to the old makerdao CDP portal shows that Oasis is the place to go but see no minting option, only generating DAI by borrowing it using KETH as collateral.

Stability fee of 0% is not attractive It is difficult to ascertain market opportunities with this stability fee and also being on the testnet - I am not yet ready to put my money into the system - is there another protocol running on the testnet where I could play with borrowing my collateral to have a look?

https://kovan.etherscan.io/tx/0x2d0e4f1c2b9b2b4dd58a64f423dbf2abfa918580ca38d85e7d3f490800675fdd

I believe that a crucial building block for mass adoption would be a service that bridges DEXs with fiat exchanges in such a way that any crypto/stabletokens can be spent by consumers at a physical or online store who could choose to receive that payment in a crypto of their choice or fiat in their bank account. This would enable people to spend their crypto at the store without stores having to deal with the regulatory and administrative headache with the state’s receiver of revenue. The consumer would likely end up paying the margin for this convenience but with food inflation like it is in my country I wish I could do groceries in crypto without cashing out and having to pay tax on them gains At the same time, shops are generally not open to receiving crypto payments yet, they still want fiat currency straight in their bank.

[cryptophile]

Hi RedHorse,

As far as I am aware you have not missed an explanation for the 0% rate. It is however due to COVID-19 and the flash crash to ETH that it caused. More detail here

https://ethereumprice.org/guides/article/dai-savings-rate-explained/

The notes on the course really should be updated to reflect this.

The way ETH’s price has recovered since I would hope that positive interest rates would return soon.

Regards,

Phil.

[Sergio_Garay]

Hey @amadeobrands, I went through borrowing and deposit DAI in Oasis, but for some reason, the savings are zero. Is it because I made this in Kovan or am I doing something wrong?

[Cryptugalia]

Hey there

sorry for the delay, I’m too far from school!

use aave for apy!
Staking on Synthetic i put snx but the fees go to the sky!
had to claim the rewards and (fee) does not make up for the fee.

but if you have more than 500 snx it probably pays off

cheers!

[Wanda]

The biggest use case of these protocols and defi development would be being able to borrow and lend out value without the need of a middleman (and actually using coins of value, unlike USD which just prints away).

[RedHorse]

Hi @Sergio_Garay,

See the post above yours from @cryptophile which is a response to the same question I had.

Hope it helps,

/R

[Romeo_Casper]

Moving freely with everything else but getting stuck here on Oasis Borrowing. Please see pic. Says “A Vault requires a minimum of 100 Dai to be generated” But there is $140 worth of ETH allowing it to generate 111 Dai. Not sure why it’s not letting me process.

But at least im getting some Chai!

[Romeo_Casper]

you should only deal with small amounts less than 100 for testing purposes.

[Romeo_Casper]

yea Kovan is test network. not real

[PapatoniC]

thanks @cryptophile good one

[DBLKCHAIN]

It took me some time to put it all together but once I did it is so much easier to start earning interest on your money as opposed to using a physical bank. There are more ways to earn interest and at better rates using defi.

[Crypto_Craven]

Any idea when a positive Dai Savings Rate will return?

[eddyIN]

Now, in Nov lot of money in form of stable coins are locked in Eth and in DeFi ecosystem as people are seeing that value of USD is declining with respect to Cryptocurrency and the return gains are almost 8%annual. So lot of hype is entering the market. Now even in Defipulse i am seeing 14 Billion usd is locked in Defi ecostystem. Even the big Investers are seeing opportunity and slowly entering the ecosystem so i think, we the students and people in cryptospace are very very early and it would not take declining of centrialized banks which pays negative interest or max 4% interest in my country will survive in 2 decades.
Thank you Amadeo for great tutorial by showing real use cases and example by actually performing on Mainnet of ETH.
Hope to all community future prosperous and free from all financial burden.
Peace

[Cendy]

Hi DeFiers!

I like when Mr. Brands says, “The most influential people in the Crypto space or DeFi space, in particular, are the builders”.

It’s so complex for someone to understand this “entire ecosystem” right now unless a person has keen interest in the space, then delving into the space would be exciting!

Ensuring yourself against Smart Contract risk is the most intriguing part of this course

Locking Etherum in a Maker DAO CDP and then borrowing you collateral to another protocol is a cool way to get involved in the DeFi ecosystem. Can trade the funds or derive synthetics and one can defferiantiate as to which protocol is the top player in the space.

DeFi space has a lot more potential overall!

[Leighton]

The evolution of DeFi as we move forward as a space is super interesting, essentially the birth of a new asset class which is being adopted and compounded by people like ourselves, enterprise and newbies entering the space.

An understanding of the fundamentals aspects combined with the tools to create a collateralised debt positions through smart contracts really gives us an advantage when plugging into this ecosystem as we grow.

Thank you for the content, much appreciated!

[Crypto_Craven]

Completed assignment and documented a guide if anyone is struggling:
[https://drive.google.com/file/d/1PEEXvjS3BbrYKwyzZ7EXmuMxz2b6wfTp/view?usp=sharing]

[lopotras]

Thanks for great content!

Great idea to introduce the direct interactions with smart contracts. Especially when you can try it out on Kovan without worrying to lose your funds.

cheers all!

[Sergio_Garay]

Thanks for your help RedHorse!