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> MakerDAO's DAI coin (currently collateralized by ETH) has already proven quite stable in the face of several black swan events and the price of Ethereum crash
by thisisit 9y ago
> MakerDAO's DAI coin (currently collateralized by ETH) has already proven quite stable in the face of several black swan events and the price of Ethereum crashing nearly 70% over the past couple of months.
That is an interesting claim. What were these black swan events which DAI passed with flying colors?
- chrisco255 9y agoI would argue the value of ETH (the asset that backs DAI) crashing from nearly $1400 a couple months ago to a low of almost $350 a few weeks ago is pretty strong. What other asset has these sort of swings in such a low amount of time? The fact that the collateral backing DAI has dipped and yet DAI has remained stable is a testament to the systems underlying it. What could kill DAI would be ETH crashing to near zero rapidly.
- thisisit 9y agoYou could argue that. And that is a good point. But it is simply price swings or volatility. The job of the stable coin is to be stable during periods of volatility, even high one as that. A black swan event is the one you pointed out about ETH crashing to zero. And there were none yet.