Oasis.app: Navigating DeFi in the UK

Oasis.app (formerly Oasis.Finance) is a UK-based decentralized finance (DeFi) platform designed to provide users with a gateway to various DeFi services, primarily built on the Maker Protocol and Ethereum.

Key Features and Functionality

Borrowing and Lending: Oasis.app allows users to borrow DAI (a stablecoin pegged to the US dollar) against collateral like ETH, WBTC, and other ERC-20 tokens. This is powered by the Maker Protocol. Users can also lend assets to earn interest.
Multiply (Leverage): One of the core features is the ‘Multiply’ functionality. This allows users to take on leveraged positions, essentially increasing their exposure to an asset by repeatedly borrowing DAI against their collateral and using that DAI to buy more of the collateral asset. While this magnifies potential gains, it also significantly increases the risk of liquidation.
Earn: Oasis.app offers opportunities to earn yield through strategies like staking and providing liquidity to various DeFi protocols. They aim to simplify access to complex strategies.
Safe DeFi: Oasis.app emphasizes security. They provide tools and interfaces to help users manage their risk, including setting stop-loss orders and monitoring their collateralization ratios. The platform displays clear information regarding liquidation prices and risk levels.
DeFi Management Dashboard: The platform provides a user-friendly dashboard that allows users to monitor their positions, track their portfolio performance, and manage their DeFi activities from a single interface.
Token Swap (Powered by 1inch): Oasis.app integrates a token swap feature powered by the 1inch aggregator. This allows users to swap between different cryptocurrencies directly within the platform, leveraging 1inch’s ability to find the best exchange rates across multiple decentralized exchanges.

Regulatory Landscape in the UK

Operating a DeFi platform like Oasis.app in the UK requires navigating a complex and evolving regulatory landscape. The Financial Conduct Authority (FCA) is the primary regulatory body overseeing financial services in the UK, and its stance on cryptocurrencies and DeFi is still developing. Oasis.app, being based in the UK, is subject to these regulations and must ensure compliance with requirements related to anti-money laundering (AML), know your customer (KYC) procedures (where applicable), and consumer protection.

User Experience

Oasis.app is designed with a focus on user experience, aiming to make DeFi more accessible to a wider audience. The platform features a clean and intuitive interface, providing clear information and guidance to users. However, given the inherent complexity of DeFi and the risks involved, it is essential for users to understand the underlying mechanisms and carefully assess their risk tolerance before engaging in any activities on the platform.

Risks Associated with DeFi

It’s crucial to understand that using Oasis.app, like any DeFi platform, carries inherent risks. These risks include:

Liquidation Risk: If the value of your collateral decreases significantly, your position may be liquidated, resulting in the loss of your collateral.
Smart Contract Risk: Smart contracts are susceptible to bugs and vulnerabilities that could lead to loss of funds.
Price Volatility: The value of cryptocurrencies can be highly volatile, which can significantly impact your positions.
Protocol Risk: Underlying protocols like MakerDAO can undergo changes that could affect users’ positions.

Users should always conduct thorough research, understand the risks involved, and only invest what they can afford to lose. Always use strong security practices such as hardware wallets.