Decentralized exchanges (DEXs) are increasingly becoming popular since they don’t require a third party to store its users’ funds. DEXs offer anonymity and users can trade their coins with peers who want to buy or sell coins. Additionally, they are almost immune to hackers.
One such DEX is OasisDEX, a decentralized order-book-based exchange, and the first decentralized exchange on Ethereum. It was first launched in 2016 even before the first Maker Protocol. The first project from MakerDAO deployed on the Mainnet was called Simple Market, which was then rebranded to OasisDEX. In this guide, we will take a look at how this exchange functions and how OasisDEX tax reports are filed.
Connecting your OasisDEX Address to ZenLedger For Your OasisDEX Tax Forms
Within ZenLedger, select the Exchange you want to import on the Import Transactions page and Exchanges tab. Then you’ll see a table that outlines the possible methods. We support a direct API code import for many centralized exchanges, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the “Exchanges” tab of the “Imports” page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
Pros and Cons of OasisDEX
- Low Trading Fees: This exchange doesn’t ask its users for trading fees. It only charges a small gas fee while executing a trade.
- Limit Orders: OasisDEX offers non-custodial limit orders and this trading option is usually missing on DEXs.
- Transparency: Traders can use Etherscan to verify all order book and trade data by leveraging Oasis Trade smart contract address.
- Lending: Investors can leverage the Oasis Save system to earn interest on their DAI balances.
- Loans: With the Oasis Borrow system, users can get DAI loans on the exchange.
- Privacy: As it is a decentralized exchange, users don’t need to register on the exchange and finish the KYC to trade. This offers complete anonymity.
- DAI Liquidity: The exchange offers the largest on-chain liquidity pool for ETH/DAI market.
- Gas Fees: Increased traffic on the Ethereum network can lead to higher gas fees.
- Native Ethereum Assets Only: The exchange only supports ERC-20 tokens.
- Limited Markets: OasisDEX has fewer listed trading pairs as opposed to other DEXs.
- Requires Wrapped Ethereum (WETH): Traders need WETH to trade on the exchange and they cannot directly trade ETH.
OasisDEX Mobile Support
A majority of traders feel that trading on a desktop gives them the best view of the trading charts and provides better information. However, traders are now increasingly adopting trading apps to trade on the go. For them, Oasis exchange offers trading apps for both iOS and Android users.
Oasis Exchange Trading fees
Centralized exchanges charge a taker and maker fee, but when it comes to decentralized exchanges, don’t charge any trading fees. OasisDEX is one of those exchanges that doesn’t charge any trading fees. All the exchange charges are a small gas fee while traders move their funds.
While swapping tokens, users don’t have to withdraw or deposit funds directly on the exchange. All such trades are carried out on the Ethereum network by leveraging smart contracts. Again, the withdrawal fee here is a small gas fee. The absence of trading fees is one of the best benefits for the traders as they don’t have to report them on their OasisDEX tax reports.
OasisDEX does not accept fiat currency deposits on the exchange. This means that crypto investors cannot trade on the exchange if they don’t have previous crypto holdings. If you are a beginner and looking for a simple exchange, look for one that accepts fiat currency deposits.
Oasis Exchange Security
OasisDEX servers are spread out across the globe, which lowers the risk of server downtime assuring users that their trades mid-transactions won’t be lost. This also makes the exchange almost immune to hackers as taking out one server will not affect the full network. Additionally, OasisDEX doesn’t hold the users’ funds. So, if a hacker somehow hacks the exchange, the user’s funds are safe as they themselves control the funds.
If you are using OasisDEX as your daily crypto exchange, you are going to perform hundreds if not thousands of transactions in a year. If that’s the case, you need to accurately calculate and file OasisDEX tax reports. This is where ZenLedger comes into play. The crypto tax software supports more than 500 crypto exchanges and with a few clicks can automatically calculate your year-end taxes.
OasisDEX is an excellent crypto exchange for experienced traders that keep privacy as their first concern. The exchange doesn’t charge any trading fees, which is also a benefit for experienced traders as they carry out a large number of transactions, saving them a lot of money.