Using the DAI savings rate - Assignment

Defi 101 Course
#597

Hi Amadeo!

I wanted to play a bit with the Kovan testnet but after wrapping ETH I am not able to convert WETH to DAI. All my orders get stuck

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I tried to use different amounts from the order book and to unlock DAI from Balances but it seems like this is not working. I think I have clear how the all CDPs procedure work and I am a bit familiar already with staking and earnings, so I think I am fine also without testing it. It is just a bit weird I am not able to make the transaction go… Maybe I am doing something wrong…

#598

Using the DAI savings rate - Assignment

Thank you for the lessons on DeFi.
Oasis works seamlessly with Metamask and whole platform is easy to navigate and interact with.

It is a clear opportunity for participants in these systems to make gains on their funds. That said, at this point in time, when markets are running hot, ascending prices of crypto I choose to stick with “hodl” strategy. At some point these platforms will clearly beat “the legacy” finance, especially when user interface is better understood by more and more people!

Waiting for Theta network to launch as well as Flare with F-assets and LTC interface to come online!

G.

#599

@amadeobrands
Hi Amadeo! Dave Rad here. Enjoying the course.
Anyway, when attempting to do the assignment;

I went to MakerDao CDP portal…redirects to Oasis.
Once at Oasis and, after connecting my meta mask, I attempted to “save”.

Message says not good to save right now.
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So, moving along, I went to create vault.
After Selecting ETH - A, I then selected ‘setup vault’.
However, I cannot confirm from Metamask.
Is this because I have not inputted savings in the first step?
Also, why does it say 72.06 (CAD) gas fees?

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Thanks
Dave

1 Like
#600

Hi @DaveRad, hope you are ok.

Oasis saving rates are at 0% at these moment, that is why it shows the alert message at the begining, also 0.045901 ETH (72.06$) is the transaction fee to open the vault, but the red warning message in metamask said insufficient funds…

Remember you should do this assignment using the Kovan Network, not the mainnet, because is just for practice, not to deal or financial advice with real money. (take in mind that we do always refer to use testnet for assignments ).

If you have any more questions, please let us know so we can help you! :slight_smile:

Carlos Z.

1 Like
#601

Hi @amadeobrands !

I am a little confused with this assignment. There seems to be many steps involved and I become lost. Is there anyway you can help? or anyone from the team ? Thanks.

1 Like
#602

Thanks Carlos! Tested with Kovan network

#603

crazy how much has changed in a few months since this was recorded.

I thought I’d be able to open an account with $50…but I was wrong. You’ll need at least $100 to test this.

Great insights!

#604

Test now is a bit expensive, but on the other side there are many juicy new dapp.

Maybe in the future we will not use this first dapp directly because tey will be in the back-end of part of the financial world.

#605

I like the application on how to get a loan through compound and dao. I will understand these more with the consistent use I put into them. I do like the interest we receive from locking our tokens up.

#606

It depends on what platform are you going to utilize and do you already have tokens you want to put into saving?
If you want to deposit DAI on Compound for example. Then all you have to do is to open their dapp, connect your wallet like Metamask, then add DAI tokens by selecting them under Supply Markets category, input the desired funds you would like to supply and click Supply.
Once your tx is confirmed you have successfully deposited funds to the contract! Optionally you can tick the funds to use as a collateral for borrowing. :slight_smile:

2 Likes
#607

The problem with DeFi now is that GAS fee is too high to experiment with a low budget. There need to be a solution for this in the future. I read somewhere that Ethereum team is trying to make a solution which would reduce the gas fee. It is needed in these bullish times when GAS fee is astronomical! :smiley:

#608

Hi there where are you getting stuck?
Best to maybe use the test network as described in the description and then experiment with it.
Maybe I should do a new video on it since indeed there has been a lot of updates to the core code ever since. The time/space in DeFi is moving so fast that it is indeed hard to keep up.

#609

I think there are a lot of great opportunities and possibilities that can come from the concept of borrowing your collateral to another protocol for other people to use. However, I think at the moment, the high gas fees and some of the details could make the barrier to entry a bit high for people who are just entering the market and may not have a lot of money to spend on both transaction fees and locking up collateral, so if there was a building block that could reduce the transaction fees, that would open up the market to an even larger audience.

#610

Hi @amadeobrands, you said that if you vote on Maker DAO your MKR tokens will be locked and you can’t withdraw them. Well this is quite stupid no? Does it mean it stays there forever and you can’t do anything with them? Or can you withdraw them under some condition?

Also I have another question. If you want to do a malicious act (as you said for example to withdraw all ETH collateral to your wallet), well yes it does mean your MKR token loose all the value. However since the collateral liquidation rate is 150 %, this means that there is always more ETH than MKR/DAI tokens. So for example you actually gain ETH in value 150 and loose MKR/DAI in value 100. You can always make a profit on that. Or did I misunderstand something?

Thanks. Your courses are great.

#611

I understand the concept of decentralized finance, but I have a problem. I was able to create my wallet and even transferred Dai to it, but I don’t want to part with the ETH I have used in other things. How can I create/earn ETH to drive these Defi transactions? I thought I saw a solution in a previous video–something to degree to adding to the liquidity pool by investing in synthetics. Do you have any ideas?

#612

I have used Compound on a few occasions with my Coinbase Wallet; but, I wasn’t actually able to lend any of the coins I had, LINK,BAT or DAI because the ETH payment for GAS was higher than what I would have received in interest for those particular assets.

That said, I attempted to use Oasis’ lend application by creating some DAI and using some ETH as collateral; however, it only offered an interest fee of 0%. Thankfully, I did notice that they had two coming soon lenders. Compound @ 2.71% and AAVE @ 13%(See Pic Below) Sadly, they weren’t available and a pop up window came up and told me not to lend until the MAKER rate was above 0.0%. Strike 1

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Given the above wasn’t profitable, I attempted to create some DAI by borrowing against me ETH in the Oasis app. After connecting my MM wallet and selecting the collateral I wanted to use I then selected SETUP my vault; but, a Metamask confirm page came up requesting 0.051 ETH or $67 in GAS just to setup a vault. Is this correct or would I get that back somehow once the DAI was repaid?

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If correct, how can we setup a vault without paying these kind of fees? I have heard people in community complain about gas fees using UNISWAP and I find them acceptable due to the profits and the ability to not have to do KYC/AML bs; but, with these protocols it doesn’t make a lot of sense move forward with that vs. a centralized application like Blockfi. Do you agree?

How much are the above protocols actually being used by the community? 0% interest on what I can lend and $67 fees to set up a vault to borrow just to get to know the protocol is a little steep. I will definitely be using the Kovan testnet option for the remainder of this assignment. Lol!

In regards to new problems to solve, I think having all these stablecoins connected to the US dollar is a problem. I would think that having them connected to a basket of currencies including gold and bitcoin would be a much safer place for people to park their profits. FB trying to make that happen which is gross option. I understand the dollar is what we price everything in and that’s how we realize profits and our success; but, long term that is a significant problem given that we are on year 50 since the last Bretton Woods type event with the dollar and the average lifespan of a fiat currency is around 40 years.

The course was great! Maker DAO was one of those subjects that was hard to wrap my mind around at first in regards to how it works. I found the medium article for the case for a trillion dollar MKR token particularly interesting. Given that, the issues I discussed above were disappointing. Additionally when I tried using the link for Maker CDP portal I was surprised to see that it forwarded me to Oasis and I could not create a vault actually through Maker. See Pic Below. Is there an easier way to create DAI or am missing something?

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1 Like
#613

How come the DAI does not show interest rates? In the video you show nice 8% interest rates but today it is only 0%

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1 Like
#614

This is the final death nail, for the banking system. My bank recently froze my account, without telling me, because mail was returned from my address. I have a paperless account. With complete access to your funds and an interest-bearing project that rival great dividend yields from the stocks as well as deflationary money, How can we lose?

1 Like
#615

On the Kovan Test Network I used the Faucet and received 1ETH.
I placed 0.7Eth in a position on Oasis and created 100 DAI
0x9720f5203e2e9c40b084562889777a607429fac0d3d952e79e4464bba563cb24
I then used meta mask and moved it to Compound and opened up a position which has so far yielded me 0.2897 $ in $COMP (16hrs or so)
I’m still figuring out exactly what I have actually done, and struggling to easily find my tx on Compound to point to.

#616

lost 0.15 eth in gas fees, for my 30c profit in yields