Oasis Multiply is a feature that allows you to immediately utilize your borrowed Dai to buy more collateral within Oasis.app. This means that you can increase or decrease your exposure to a single asset without having to perform multiple transactions or go to other apps to perform the exchange.
As a user you can deposit collateral in a Vault to self-generate Dai as a funding source to purchase more collateral, multiplying your exposure to the asset all in one single transaction.
With Oasis Multiply, you can use your ETH, wBTC or other Maker supported collateral types to create a multiple position and take advantage of upward trends of the supplied collateral. Currently, LP Tokens are not supported for Multiply.
Oasis Multiply employs the standard functions of Maker Vaults while also adding new integrations to efficiently provide these features: it employs the Flash Mint Module from the Maker protocol to source flash loans and it sources liquidity from 1inch DEX aggregator, to guarantee the best price when swapping Dai or collateral.
You can take advantage of these actions to open a Multiply position without the need of a pre-existing Vault.
By opening a Multiply Vault you will be able to deposit collateral, select collateralization ratio and execute a single transaction which will open a Maker Vault, Flash loan the required amount of Dai to swap for collateral, lock this collateral into the Vault, and generate enough Dai to payback the Flash loan and associated fees.
This will leave you with a Vault with at least a 1x exposure, up to 4x depending on the collateral you choose. Check the full tutorial here.
After opening a Multiply Vault you will be able to adjust your position with just one transaction by selling or buying more collateral according to your preferred risk and to the market conditions. You should always monitor your Multiply Vault collateralization ratio to avoid liquidations.
This is a unique feature available by using the Maker Protocol to create Multiply Positions. In most traditional leverage or margin positions, your only option is to leave the position open or to close it.
Standard Borrow features are also available for Multiply Vault which means you can deposit or withdraw collateral or Dai to adjust your positions.
If you have already opened a traditional Vault, you can turn it into a Multiply one.
With just one click, current Borrow Vaults can also take advantage of Multiply with a simple Vault upgrade. As a regular Vault owner, this means you will be able to increase or decrease your exposure without the need for sourcing additional collateral or Dai on the market.
All Oasis.app users can also take advantage of Multiply actions to close their Vaults with just one transaction.
When using a Multiply Vault, either a new one or from an existing Borrow Vault, users will now have the option to close their Vault without the need to first repay their debt from Dai in their Wallet. Users can choose to close their Vault to Dai, which means all collateral in their Vault will be sold for Dai, one part will be used to pay back all outstanding debt and the rest will be in their wallet. Both these close options are possible by utilizing Flashloans to pay back the debt first.
Oasis.app charges a fee per Multiply action of 0.2% over the required swap. Flashloans use Maker Flash Mint Module for borrowing Dai which is free. Multiply Positions will pay an ongoing stability fee to the Maker Protocol like every Maker Vault. As usual Ethereum gas fees will apply, with the value dependent on the network conditions. Standard actions in all Vaults are, as always, free.