Using the DAI savings rate - Assignment

Defi 101 Course
#657

Hello @amadeobrands ,
i really enjoyed the course as it was very interesting and full of new ideas.
i tried to use the kovan faucet to generate eth but i couldn’t get pass the logging screen from github as after i sign in it shows me a message
‘’ What‽

''Your browser did something unexpected. Please contact us if the problem persists ‘’
i was thinking to try on the mainnet but the gas fess are insane at the time being.

so i had this idea as follow;
1- deposit eth into maker to generate dai, taking dai to compound to deposit to get yield which will give me cDai
2- after having cDai i would go to uniswap and swapped it back into eth
3- taking the eth and go to maker again and open another vault to generate Dai
4- depositing that Dai into curve.fi to into 3pool, or taking that Dai to compound and repeat the steps again.

so does this theory work for making for the most yield? i’m a bit confused here.
would love to hear from you, thanks in advance :smiley:

#658

A big concern for DeFi is the high gas fees atm, this bull market really pushed the fees up. Hope ETH 2.0 will cure this, but there’s certainly uncertainty.

#659

I was initially well intentioned to use compound, but given the fees on the ETH network it wouldn’t have made any financial sense with the small amount. So, like others, I went on using binance chain and pancake. I set up the wallet on Metamask, withdraw funds to it and started playing around on pancake swap. I then staked some cake in the pool.

#660

Yo @amadeobrands zullen we het in het Nederlands doen? Nah just joking. But I’d love to do this assignment and I do love the content, did learn quite a lot but at the moment the gas fees are insane soo you’ve gotta put so much money in the vault or as collateral to borrow that for an assignment its a bit crazy. I recommend to maybe do a little update on this course. I like the content but its not really up to date anymore. In the video the gas fee is 1,28$, they’ve asked me atm (23-02-2021) 81.95$ in gas fees.

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#661

I am running into the same problems as everyone else here. I tried generating Dai on Oasis but the app alerted me that there is a minimum amount of Dai , called Dust, that is required in my Wallet in order to open a collateral position. Currently it is 2000 Dai and the gas fees came out to $684 :(. And here i was complaining about the gas fees at my local Shell Pump.

I think it is better to save that cash and invest in buying, trading or hodling coins. I have started using Pancake Swap. The fee’s are usually only a few cents. It is a more affordable option to test various different Defi products and to try your hand in Defi trading.

#662

When locking Etherum in a Maker DAO CDP and then borrowing you collateral to another protocol do you see any interesting market opportunities? Or do you have any cool ideas of new building blocks that we can build together let’s discuss it in this forum thread.

Ethereum is currently having a bunch of scaling issues and zk rollup solutions. A specific layer 2 solution that is interesting at the moment is Polygon (MATIC) which solves the problem with Ethereum’s gas fees. This is a short term solution as it is not viable solution for years to come. Personally I believe as said in the course that Ethereum is the first of its kind and with Eth 2.0 years away I potentially see a railroad boom and bust scenario playing out or other networks simply doing a more efficient job and seeing developers leaving Ethereum.

#663

Still a bit confused because I am earning 2% rewards on my dai on coinbase.

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#664

Is not that hard to understand, the basic idea is that you lend your funds to the protocol, they will use your funds to invest in different ways, so a portion of their earnings goes to the uses as interest payed over the money they lend, each protocol can have different rates, compound is 0% at the moment on DAI, aave is 5.6% and coinbase as you mention is 2%.

Carlos Z

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#665

Thanks @thecil or your response.
I get the basic idea you mention, and I think the way you word it is well worded.
To make sure I understand completely Ill describe a possible scenario…

So coinbase gives 2% to its dai holders on the exchange because coinbase is using that dai to invest how they like.
on the other side oasis gives 0% to its dai holders because oasis is using that dai to invset how they like…

What’s the point of having a 0% or why does that happen? At 0% nobody is going to hold their dai there or are their other incentives?

#666

Yep. Thats the “under the hood” of what some companies does with the funds.

Now this is a completely history for oasis, the DSR % is decided though the community by the voting governance on MKR, which together decide to stop the DSR long ago. You can research a little bit more and you will find the tx id for that vote event. (meaning that in a future the community can propose to increase the DSR and try to approve it).

Carlos Z

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#667

I agree with this @Reid

I can see the use case for borrowing to leverage a crypto asset you think will increase in value in a bull market, but the risk of losing the over collateralized asset just seems like a silly idea when thinking of traditional finance.

#668

After enthusiastically working through this course and really enjoying the content its very disappointing to get to the end and see how the DSR is now 0% because of a ‘black swan event’ and most of the protocols discussed in the videos are stuck in the mud of Eth gas fees. Almost like I’ve seen the full potential of DeFi and then look at the Eth DeFi space failing due to the scaling issues as soon as I have learnt about it and before I’ve even tied to use it.
Great course @amadeobrands but I think it at least needs a footer to show how the system is struggling right now.

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#669

Maker currently seems to be at 0.01% which is less than my current bank so there’s not much incentive to move my savings there. Compound and Curve still have decent rates though. I also noticed AAVE is now listed on the Oasis app as coming soon and it has higher rates, will be looking into that in the near future. Another problem that is happening now is the eth gas fees. Paying $80 to put $40 into a savings account doesn’t make sense on any level, then you would also have to pay the fee to collect the money afterwords. So unless you’re moving very large amounts of money at a time, it would take years and years to just break even.

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#670

Just got some test ETH from Kovan testenet faucet.
Oasis works with Kovan but only to display my test ETH balance .
Can I covert my test ETH in to DAI to test a protocol like MKR or Comp in Kovan via GUI?

#671

I’ll get back to this assignment during the bear market! :rofl:

Matt

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#672

As expected some years ago, Ethereum is running into scaling issues. Gas fee’s are becoming the bottleneck for a greater user adoption. Lets hope that in the future we have tackled these problems and resolved them, so that when a catalyst like the gamestop fiasco happens in the future, the DeFi space is ready for the migration of those traditional finance users.

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#673

As many here are mentioned, it’s pretty expensive game at the moment to be playing around the Ethereum blockchain… I will do that later time, but after these presentations I have a clear idea of what I’m doing, what to look for and what kind of security matters to examine when using these services. It was also cool to get to know different kind of tokens such as stable coins and governance tokens, and to find out how they function in practice.

Let’s hope Ethereum 2.0 at the latest solves the problem with the gas fees, and I’ll be back at this task after that :+1:

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#674

So. In the course you should be warning people, that gas fees are incredibly high. I did not know. I bought 30 Dai to do the exercises, to see how it works. I transferred it to my metamask, now there are only 16 Dai left. Then I wanted to try Compound, guess what. the fees are higher than the actual sum. So basically I spend 30 Dollars for nothing. Please give a warning for absolute beginners, since this is a beginner course!!! @amadeobrands Thank you :slight_smile: The course is well explained, but that should be adressed.

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#675

We just did this lots of fun using the Kovan test network. Keep in mind the faucet link does not work. You need to post your Kovan ETH Address in a chat room. You get 6 ETH each 2 days.

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#676

Hey @bfleming98 how are you? Can you please show me what you did to access the test because I can’t seem to access it and since I don’t have any real ETH in my wallet I can’t actually open the vault. Please help. Thanks in advance.

@amadeobrands the course was great, some things needed to be fleshed out a little more because you kind of ran through it as though we already knew what was going on when it came to how quickly you navigated through all of those links and tabs. Also, if you can please update the video and let folks know that there has been a change so that executing this assignment with the links you gave is no longer possible. Thanks. See you in Defi 201 tho :slight_smile:

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