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Isn't the DAI better describes as semi-stable since it holds reserves in Ether and other cryptocurrencies but is pegged to the dollar. This exposes it to system
by shkkmo 5y ago
Isn't the DAI better describes as semi-stable since it holds reserves in Ether and other cryptocurrencies but is pegged to the dollar. This exposes it to systemic risk in the way that stablecoins backed by reserves in their pegged currency are not. The degree of excess in their reserves does cushion against a lot of violatility, but that cushion is finite and could easily vanish in a cryptomarket crash.
- coolspot 5y agoAFAIK it survived ETH price crash from $1400 to $90 .
- shkkmo 5y agoHave any details on this? I find those numbers implausible without a context or a citation.
- ostenning 5y agoYou can just look at the market cap and price history of DAI through the last market crashes
- shkkmo 5y agoI did, it was not clear to me what was being referenced. If there is a good example of DAI surviving such instability, a reference discussing how that happened seems like a pretty reasonable requests given the strong claims that are being made.