- New offering adds to the platform's existing support of Maker collateral types
- Users can immediately utilize their borrowed USDC to buy more collateral
Oasis.app, a DeFi platform that helps users get the most from their assets, is expanding its multi protocol offering, starting with Multiply functionality through AAVE for ETH, stETH and wBTC, Bankless Times learned from a press release.
The new offering adds to the platform's existing support of Maker collateral types and stETH yield optimizing strategies on AAVE. The same popular interface is largely unchanged, but now also features AAVE as the source for liquidity.
Users can borrow stablecoins, create positions
Oasis Multiply runs on top of AAVE, 1inch, and the Maker Protocol. Users can borrow stablecoins and create positions not unlike margin or leveraged positions. The difference is that they don’t have to borrow from a centralised entity.
The new introduction of Oasis Multiply for AAVE enables users to immediately utilize their borrowed USDC to buy more collateral (currently wBTC, ETH and stETH) all within the platform. This means users can increase or decrease their exposure to a single asset, without having to perform multiple transactions or use other apps for the exchange.
With these new collateral alternatives for Multiply, users can select to increase their exposure to wBTC, ETH and stETH. This is enacted in the same manner as already available for stETH - the yield optimized stETH strategy, where ETH debt is used - using AAVE through Oasis UI.
Single and instantaneous transaction
Users enter a position with any of the supported collateral, select the multiple, and open a long position with just a couple of clicks. In a single transaction, Oasis.app deposits the user's collateral to AAVE, borrows USDC and purchases more collateral with it, before depositing it back into the protocol.
Oasis charges a fee of 0.2% over the required swap per Multiply action. A variable borrowing fee is paid from the user's Multiply position to AAVE, and users are paid a variable lending fee for providing liquidity to AAVE. Ethereum gas fees apply, with the value dependent on the network conditions.
Risks increase with exposure
With Multiply products, as a user's exposure increases, so too do the risks. Liquidation risks are higher in Multiply positions, so they need close monitoring to ensure the LTV remains within healthy limits. While AAVE and Oasis are battle-tested apps, smart contract risk is always present. Early in 2023, Oasis will add stop-loss functionality in order to help users mitigate this risk.
Oasis.app CEO Chris Bradbury said:
It’s great to see additional support for AAVE Protocol land on Oasis.app after the recent stETH Earn product using AAVE a few weeks ago. Not only is it another protocol our users can use, but it gives them the option to multiply their exposure now against USDC as well as Dai. All of this continues to drive us towards our ultimate vision of building the most trusted place to deploy your capital across DeFi, and there are several exciting updates ready to add to this release after the holidays.
Stani Kulechov, Founder and CEO of Aave Companies, added:
It’s great to see continued innovation in the DeFi space and growth in the Aave ecosystem. Oasis Multiply brings new functionality to the Aave Protocol that simplifies how DeFi users can adjust their exposure and positions in a few simple steps. By making the UX and UI more seamless, Oasis is increasing the overall usability of DeFi. This is the right step towards encouraging broader adoption.
Contributors
