To get started, simply click choose the wallet you wish to interact with and approve the prompt in the wallet.
Let’s take a look at a full overview of using Oasis products.
Oasis Borrow is where users can create Dai by locking collateral supported by Multi-Collateral Dai. Borrow currently supports Ether (ETH) and Basic Attention Token (BAT) and will soon integrate other ERC20 tokens like 0x Protocol Tokens (ZRX).
To open a Borrow position, look for the plus arrow on the left-hand side of the page. This will bring you to the collateral overview to select which type of collateral your Vault will be collateralized with.
Next, select how much of the collateral type you wish to lock within this position. Maker automatically calculates the market price using oracles, providing a “max Dai Debt” figure which indicates the maximum amount of Dai that can be borrowed from the loan.
On the right-hand side of the page, users will see very specific information regarding the position including the Collateralization Ratio (which must remain above 150%), Liquidation Price and current asset price. Similarly, users are also shown the Stability Fee – or the annualized debt that incurs on an outstanding loan position.
Before approving the creation of a Vault, Maker allows traders to review these metrics again, as to ensure that all details are properly vetted prior to opening a new position.
One of these metrics is the Liquidation Penalty – or the loss that is incurred should the collateral being used fall below the 150% over-collateralization value. For this reason, it’s crucial to ensure that Vaults are opened with a minimum of ~200% collateral to account for any sudden price volatility that could liquidate the position.
After selecting “Open Vault”, a transaction will occur in the connected web3 wallet, effectively allowing smart contracts to withdraw the amount of collateral being posted, and returning Dai.
Active Borrow positions can be managed through the user dashboard, and all borrowed Dai (plus the Stability Fee) must be paid back to close the position.
Dai created using Oasis Borrow can be traded and transferred at will by the borrower, with locked collateral being released once the debt has been repaid and the Vault has been closed.
Now that Dai has been created, let’s look at how it can be used within Maker.
Oasis Save is home to the Dai Savings Rate – an annualized interest earned from locking Dai via Maker smart contracts.
Oasis Save is really quite simple. Input the amount of Dai you wish to lock and press “Deposit”. This will queue a transaction in the web 3 wallet being used.
While processing, you’ll even see a notification in the top right side of the page.
Once approve the “Balance” will be updated and you’ll start earning Dai in real-time!
Dai can be withdrawn at any time using the “Withdraw” feature.
Got some extra Dai laying around?
Oasis Trade enables market and limit order with assets being exchanged directly within the connected web 3 wallet.
When needing to exchange between different forms of collateral to get started with Oasis Borrow or simply to convert collateral back to Dai to close a Vault – Oasis Trade is for you.
As an emerging DEX in terms of daily volume, it’s likely that more trading pairs will be added as Maker updates the supported collateral for Mult-Collateral Dai.
Oasis is home to all things Dai. With a sleek interface and easy to use features, it’s no surprise that Oasis (and Maker) have seen strong growth in the past few months.
Moving forward, it’ll be interesting to watch other exchanges interpretations of Oasis Trade, Borrow and Save as they look to leverage passive income opportunities like the Dai Savings Rate. To get started with any of the Oasis products mentioned in this guide, visit the following links:
Oasis Trade – https://oasis.app/trade/
Oasis Save – https://oasis.app/save/
Oasis Borrow – https://oasis.app/borrow/