Borrow

Deposit collateral to access Dai-denominated credit.

Autonomous borrowing - borrow Dai by locking up ETH in the Maker collateral vault.

Example:

Lock up 100ETH in the collateral vault Borrow up to 66ETH worth of Dai Repay borrowed Dai at any time in the future and get your collateral back

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Arbitrage

Compete for profit opportunities provided by the Maker platform.

Maker creates a market for debt by buying and selling Dai as the liquidator vault goes in and out of surplus.

PETH supply is adjusted to maintain its ratio to collateral proportional to circulating Dai.

Opportunities for arbitrage across DAI - PETH - USD pairs.

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Leverage

Re-invest borrowed Dai to build leveraged positions.

CDP owners can use borrowed Dai to purchase more collateral on the open market, and then use that collateral to open another CDP, thus increasing exposure to changes in the value of the collateral.

This functionality is being used by the proxy contracts supporting Oasis Direct for example, and it’s easy to imagine how these properties can be used in interesting ways.

It would be easy for example imagine to writing a contract that accepts ETH and gives you back a recursively-leveraged CDP or an ERC20 token containing a CDP, which would resemble a leveraged ETH token (think leveraged ETFs on NASDAQ).

Hedge

Manage risk with Dai.

Buy Dai as a shelter from volatility. Exchange crypto-assets for Dai during periods of uncertainty.

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