I had issue using the kovan test-net so I wasn’t able to experiment it.
However, I think this new financial system creates new opportunities for the market makers and even for the developers and startups. The high APY will attract many people, but I think many people will have difficulty using this for the first time. Also, with the high Ethereum gas fee right now, this will prevent many people from using it. I hope these problems will get fixed in the near future.
In the MAKERDAO video, first one in this deep dive series… 46:57 minutes into the video, he says the DAI is wrapped, then injected, but injected into what? Not understanding the accent nd the “fade away” in his intonation…
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Understand about burning. That’s what I imagined it to be, but then read that the fees were the burning. Thanks for the link. It helped to know that it can be compared to stock buybacks, something that’s already familiar in traditional finance
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I had some trouble with the test-net process and was unfortunately unable to complete the assignment.
However, I definitely understand the benefits of minting DAI by providing collateral to the Maker system. While your collateral is safely locked away in your Maker vault, it gives you the flexibility to purchase and sell other cryptos with your DAI loan while having the option to redeem your collateral simply by paying your loan back, no matter what the price of ETH may be at the time. This allows you to make profits off of the loan while never losing access to your ETH like you would if you simply sold it and used it to perform trades instead of the DAI loan.
“When locking Etherum in a Maker DAO CDP and then borrowing you collateral to another protocol do you see any interesting market opportunities?” It just seems like a better way of saving, particularly now with inflation and possibly negative rates coming.
“Or do you have any cool ideas of new building blocks that we can build together let’s discuss it in this forum thread.” I like the thought of making a local currency and lending pool
Hi
I found a few unpleasant point. I transferred 0.36 ether to Metamask. 0.125 was withdrawn for Maker: Proxy Register, Compound: Comptroller and Tether : USDT Stablecoin. I didn’t transfer these amount and have no clue what is it.
When I tried to exchange Ether to DAI in Metamask, $ 117 the Metamask asks me a commission $ 57
Current stable fee in Maker DAO is 5.5% if you use Ether as a collateral and minimum amount of DAIs you can borrow is 5000. Compound and Curve offer APY 5-9%, yearn.finance offers 18.75%. Opyn insurance costs 7%. All is good but if you like transfer 100 DAI to Compound protocol you need to pay $10. Number of crypto you can borrow/lend/pledge is restricted.
May be another wallet offers lower commission fees or if you invest $50000 the commission in % is lower. However the conclusion is simple:
- System suffers high gas cost and it makes the entire area is not available for retail investors.
- Very limited amount of crypto system lends each other and are the pledge of each other, using synthetic crypto dollar, DAI. What is the difference between this idea and fractional-reserve banking? With math point of view there is no any difference.
- If system is not able to construct a bridge between the real world’s assets and crypto world the demand for DAI will decrease and not match a supply because a source of speculative fiat is limited by crypto sphere exclusively. DAI cannot pretend to be a world’s currency as just a currency for crypto geeks.
Your opinion, guys
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After DeFi 101, I have subsequently moved most of my savings to the maker protocol and trying to yield there instead of letting my fiat depreciate in value . I turned it into DAI and let it earn some interest.
Sure 8% is not much but at leat its something, and way much more than what traditional finance could offer .
Thank you @amadeobrands or the intriguing lessons .
Thanks to @ivan on tech Academy .
This course is affecting my life in Good ways .
I am glad to be here.
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Hi, looking at the Oasis app the DAI savings rate is currently 0% APY. The minimum amount of DAI that can be generated in a vault is currently showing as 5000 DAI and I am needing to have enough collateral to generate at least that amount of DAI before continuing. What is the reason for this? I also tried to use the test link and it did not seem to work. I am unsure on how to complete this assignment because of these issues at the moment. Appreciate any advice, thank you.
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Hello @amadeobrands
I have the same issue as @Brett82.
The DAI saving rate is currently 0,01% APY. Additionally, if I still decide to go ahead, I will need to create a Proxy that has a cost of 223 DAI. Thank you for your support.
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Hello again! @amadeobrands
When trying to use Chai, for 50DAI, the transaction fees are $19, what is the reason for this? I am unable to test any of the mentioned protocols. Could you please provide some further guidelines regarding this topic? Thank you for the support!
I tried this experiment via Kovan Testnet and after some struggles I was able to deposit ETH to my adress and swap it to DAI afterwards. I was succesful with depositing DAI into Savings account on Oasis platform.
I think it was mentioned here couple of times, but with locking your DAI you can protect your funds(FIAT) against inflation and have some reasonable interest just by providing liquidity. I see opportunities in Insurance sector, when you will be able to insure via smartcontracts your car, house, or travel insurance. 
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Hi Cortis! You are doing all this in real network, not in test networks I assume. Currently, transaction fees in Ethereum network are very high (15-40$ per tx). So, if you are playing with small amounts of DAI I would not do it in real network, otherwise you will have to pay these huge commissions and gain nothing.
Good luck out there!
Alexey
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The opportunities that DEFI lending could present are endless. Loans for housing, a new car or a personal loan could be available to anyone without having to try to borrow from a bank who may refuse your loan request. I really like the idea of DEFI insurance too. I can definitely see DEFI lending and borrowing becoming more mainstream in the future.
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Hello,
As mentioned above, current gas fees are really high. You have to transfer bigger amount of DAI for possibly earn some interest. Right now you can earn much more in some cases with trading altcoins. I see very interesting locking DAI in bear market to earn interest. Instead of just keeping and holding stable coins, you can earn iterest on top of them at that time.
Now that the transaction fees for Ethereum is super high ,I’ve switched to the Binance Smart Chain network, fees here are super low. Venus on the BSC network ,is the equivalent of Maker and Compound into one. The best part of Venus is that your locked up asset for minting coin (Vai) is earning you interest.
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Hello! Thanks for the comment, i will look it up 
DeFi are way more important than what i thought. I felt that i learned so much in such a short time 
but the more I learn, the more I have to learn because there are so many protocols and new apps and each of them are different.
The only problem that I find is that its still a bit expensive. Its better to put some money on a side and understand very well how is everything working before putting a few money that could be lost on fees.
Hi, hope the info will help you! 
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In a DeFi space the problem is that ETH gas fees take a lot of money. I hope soon it will be solved somehow.
yes made this mistake testing out dyp staking dapp, gas to deposit was more than I’ve earned staking 