If you believe in the long term value of the collateral you deposited and don’t want to sell it, but you need some cash for something in your life, you can borrow and use Dai.
Connect your wallet which has the assets you plan to use. For example, if you want to use ETH to generate Dai, use the wallet that has ETH in it.
If you want to use an asset that has more than one “Type”, for example “ETH-A” vs “ETH-B, check that the conditions for the Vault Type are in line with the risk you want. In particular you should check the Stability fee and Minimum collateralization ratio.
Then click on “open Vault”
On the right hand panel where it says “Configure your Vault” decide how much collateral you would like to deposit. (if using ETH, be sure to leave some in your wallet for gas).
Then click “Generate Dai with transaction”, after which an input box will appear.
Input how much Dai you would like to borrow while monitoring the left side of the screen where it says “liquidation price” and “Collateralization ratio”. These will be your future risk metrics. Make sure they are at a level that you think is safe.
Click confirm, then set allowance and confirm again.
Now your Dai is in your wallet, which you can see highlighted in the top right of your screen.
Navigate to an exchange that supports Dai. For example, Coinbase.
Create an account if you do not already have one.
Copy your Dai address associated with your account.
Send Dai from your wallet to the Dai address associated with your account. Always double check that you are sending funds to the right address.
Sell Dai for a cash deposit into your connected bank account.
Remember to monitor your Vault's health.
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