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So, Dai is a stablecoin that by my understanding is collateralized similarly to this one, except that it requires ether (and I believe USDC is also an option).
by sanderjd 5y ago
So, Dai is a stablecoin that by my understanding is collateralized similarly to this one, except that it requires ether (and I believe USDC is also an option). However, its peg held up very well during the recent precipitous drop in the price of ether. I'm curious if anyone here knows whether that was an algorithmic success in comparison to this, or perhaps just an artifact of people having more confidence in ether.
- RaketenStadt 5y agoAccording to paragraph 3 of TFA it's not collateralized similarly > Other on-chain stablecoins like DAI are over-collateralised. For every $1 of DAI, there’s ~$1.75 worth of crypto assets in the DAI system.
- sanderjd 5y agoThank you! That's the critical fact that I missed!
- zionic 5y agoDAI kept its peg while ETH went all the way up to 1440 and back down to $70. It’s also kept it up from $70 to $4400 and back to $2300, so we’re well within norms.