Oasis.app – Generate DAI and Manage Maker Vaults with EPNS

Stablecoins are a class of cryptocurrencies whose value is pegged against crypto, fiat, money, or other exchangeable commodities like gold, silver, etc.

Stablecoins were created to negate the speculative nature of most cryptocurrencies or to stabilize the volatility created in the crypto space to an extent.

Since the crypto space is still in its infancy stage the liquidity of the digital asset remains low causing low liquidity which leads to high volatility. For the crypto market’s mass adoption it is vital that the volatility in the price fluctuation is stabilized as it limits the practical use of cryptocurrencies rendering them useless.

To tackle the high volatility created in the price of cryptocurrencies Stablecoins were created. Stablecoins use blockchain technology to create cryptos that remain stable in value against the pegged external asset class.

Stablecoins have the following advantages:

A. Backed by real-world assets

B. Used for global transactions

C. Low fees

D. Instant Transfers

E. Provide protection during periods of high volatility

F. Sent and Received at any time, anywhere by anyone

G. Facilitate easy cross-border payments

H. Pegged against any asset

I. Less speculative and volatile assets

J. Boosts crypto credibility and adoption

K. Aid unbanked businesses to receive and send funds

DAI is one of the most useful stablecoin that is pegged against the US Dollar and is used in DeFi lending, borrowing, or trading and reducing volatility. It was first introduced in 2017 as a way to provide non-volatile lending assets.

DAI maintains a 1:1 value with the US Dollar via locking other crypto assets, it is the first collateral-backed cryptocurrency to reduce volatility in the crypto market.

DAI is created by the smart contracts of the MakerDAO decentralized application built over the Ethereum Network. Users deposit Ether as collateral and in return can borrow newly generated DAI against the collateral deposited on the MakerDAO platform. The minimum collateralization ratio at present is set to 150% Ether : 100% of DAI. So on deposit of Ether roughly equivalent to worth $150 as collateral the users will receive DAI roughly equivalent to worth $100. In case the collateralization ratio falls below the threshold ratio, the smart contract function can be called upon and the loan can be liquidated and a part of the collateral will be received as a reward.

As a consequence of repaying the loan borrowed and the interest incurred on the borrowed loan the returned DAI is automatically destroyed and the collateral can be withdrawn. Through the automatic destruction of DAI and the type of collateral accepted, rate of interest, and collateralization ratios MakerDAO is in control of the value of DAI and the amount of DAI in circulation.

DAI is regulated by MakerDAO, a decentralized autonomous organization i.e, a decentralized governance community. MakerDAO was formed by Rune Christensen a Danish Entrepreneur in 2014. The MakerDAO platform has MKR token which is its governance token and the holders of MKR vote on changes to certain parameters in its smart contracts in order to ensure the stability of DAI.

The whole process of creating DAI seems complex and scary for new DeFi protocol entrants, to make this easier and user-friendly the OASIS App was created.

What is the Oasis.app?

With the growth in Decentralized Finance and owing to the volatile nature of the crypto market, DAI plays an important role in DeFi applications and helps reduce price volatility. Oasis.app has created an extremely simple user interface to access the Maker Protocol enabling anyone from anywhere to borrow and use DAI.

Users can easily borrow DAI from Oasis.app by opening Maker Vaults.

Maker Vaults facilitate increasing the user’s exposure to multiple collateral types by leveraging the features offered by the Maker Protocol of being decentralized, non-custodial, and permissionless. By using Oasis Borrow users can lock in their assets as collateral in the Vaults and generate DAI in return for depositing multiple collateral types.

Users can open a vault by simply connecting their wallet to the Oasis.app and on depositing collateral the users can generate DAI. Users are free to choose from over 30 crypto collateral sources each with its own risk parameters and minimum collateralization ratios. Oasis.app can connect with half a dozen wallets making it easy to borrow DAI with flexible repayment schedules and ease collateralization.

Vaults can be opened and managed free of cost on Oasis.app except for stability fees and gas fees. Stability fees are a percentage of the variable annual rate required to be paid, in simple terms, it means the cost to generate DAI and it directly goes to the Maker Protocol.

A debt ceiling is set in place on the Oasis.app, it is an upper limit for borrowing DAI against each Vault type. The Debt ceiling is different from the DAI available against each Vault, on reaching the debt ceiling the users can visit the app after a few hours to check if the Maker Protocol has updated the debt ceiling.

Oasis Multiply allows users to generate DAI and spend them to increase the exposure of their selected collaterals through swapping the borrowed DAI for more collateral in the same transaction. Oasis Multiply is created on the 1Inch Dex Aggregator and Maker Protocol. A fee of 0.2% is charged for every token swap that is executed within a Multiply transaction.

Collaboration between Oasis.app and EPNS

DeFi services and protocols are linked to several decentralized applications and platforms which makes it tedious to be on top of all the platforms associated with DeFi opportunities. Users have to constantly check their emails, Twitter or Telegram to be constantly updated which involves constantly staring at the phone screen or the computer screen but this can be overcome by users receiving decentralized push notifications.

The collaboration between Oasis.app and EPNS will make it easier for Oasis.app users, who are highly dependent on notifications received from the platform, to receive direct push notifications. The following updates can be received by the Oasis.app users directly in real-time :

A. Risk of liquidation due to a sudden price drop after the next price update

B. Certain Collateralization ratios are reached enabling users to take action either to buy additional collateral or repay.

V. Changes made to risk parameters like Stability Fee or Debt Ceiling that affect the type of Vault owned by the user.

This collaboration will help Oasis.app users to take prompt action related to DeFi notifications while protecting the data privacy of users.


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