DAI Interest rate

I must be missing something. As I go to Oasis to save DAI I see that there is a 0% interest rate for locking up DAI. That confuses me because there would seem to be NO incentive to save? At least at the corrupt bank I get .25%, What am I missing?

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Hi! I have the same question. Did you get some clarity?

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Hello @Clarence, @kyliezz, hope you are good!

Now indeed, at these moment there is no APY % on Oasis, but that has been made through their governance proposals on maker dao, that could change in a future, through a new proposal, users can vote to activate or change features on Osasis, like the % of APY, Collateral %, etc…

Most of the old good protocols on DeFi have their own token for governance purposes, like all mentioned before (mean, you can participate through voting on changes on the platform).

Here you can check other protocols that have different APY rate than Oasis.


Carlos Z

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Thank you @thecil! You filled in a big confusion I was having. Now the question as to whether to participate in voting by acquiring such tokens…

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It is not mandatory to participate in the voting process, is optional for every user, but at the end all users will be affected by the approved proposals.

For example, Compound change their APY for DAI, from 4% to 0.5%, users can vote in favor or against, let say this proposal goes approved but you did not participate, if by majority this proposal win, you will also be affected by it.

Here you can check about those proposals on compound, even participate on them with your COMP tokens: https://app.compound.finance/vote

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

Carlos Z.

One more question on that note… I’m sure @amadeobrands explained it in the course but why would participants vote to have such an APY go down from 4% to 0.5%? Does it not benefit everyone to have it go up instead?

Basic the reason is COVID-19. On the 12 March ETH crashed causing DAI to go up to $1.08. Therefore MakerDAO via governance voting set the interest rate to zero to try and stabilize DAI

This is explained well below.


Really the the course notes should be update to display this information clearly. It is confusing otherwise!!.

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