3 ms·

Isn't most of DAI stability artificial through bots because it is just a cryptocurrency-collateralised derivative contract which uses ETH for the collateral? I

• babaeth 8y ago
  What do you mean by ETH collapsing? You mean going to 0? ETH has lost more than 90% of its value in 2018 but DAI remained at $1 which seems pretty stable
• DennisP 8y ago
  The only external input to Maker/DAI is a collection of ETH price feeds. The rest is an open market. I'm sure some market participants use bots, but that's true in every financial market these days. I was skeptical of Maker at first, and they are backed by ETH, but they've stayed within 1% of their target price while ETH dropped 94%, so it seems to be working pretty well so far. They're working on a multi-collateral version.
  • ac29 8y ago
    >they've stayed within 1% of their target price I'm not sure which charts you are following, but as recently as yesterday they were 5% off target: https://coinmarketcap.com/currencies/dai/#charts https://coinmarketcap.com/currencies/dai/#charts