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Because banks are heavily regulated, professionally managed and back-stopped by the most powerful entities in the world (the governments of the countries of the

by floor2 5y ago

Because banks are heavily regulated, professionally managed and back-stopped by the most powerful entities in the world (the governments of the countries of their operations). Tether by contrast is a pretty much an obvious ponzi scheme that everyone is just playing along with because they're making money and hoping they get out with profits before it implodes.

przeor 5y ago
How about DAI?
- legutierr 5y ago
  DAI is mostly collateralized by USDC so there is a lot of overlap in the risk exposure of the two assets.
  - przeor 5y ago
    why someone would colletarize a stablecoin like USDC to generate less stablecoins like DAI? Where id the gain while on a dollar to dollar its close to 1:1 ratio all the time?
    - deleted 5y ago
      [deleted]
    - legutierr 5y ago
      It’s not that DAI is over-collateralized with USDC, it’s that among all the different collateral types, USDC is over represented. This Reddit thread provides a pretty good explanation as to what is going on: https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comme...
      - cinquemb 5y ago
        Here are live stats about dai (and including its collateralization)[0] [0] https://daistats.com/#/overview https://daistats.com/#/overview
        legutierr 5y ago
        Thank you! Can you possibly explain the difference here between "Dai Collateralization" and "Dai Generated by Collateral"? In one chart ETH still predominates, but in the second USDC is the largest portion.
        przeor 5y ago
        answer to your question is here in reddit comments https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comme...
przeor 5y ago
btw. isnt this story about USD I hear for last 25 years? Before it "implodes"? just thinking

by floor2 5y ago

przeor 5y ago

How about DAI?

legutierr 5y ago
DAI is mostly collateralized by USDC so there is a lot of overlap in the risk exposure of the two assets.
- przeor 5y ago
  why someone would colletarize a stablecoin like USDC to generate less stablecoins like DAI? Where id the gain while on a dollar to dollar its close to 1:1 ratio all the time?
  - deleted 5y ago
    [deleted]
  - legutierr 5y ago
    It’s not that DAI is over-collateralized with USDC, it’s that among all the different collateral types, USDC is over represented. This Reddit thread provides a pretty good explanation as to what is going on: https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comme...
    - cinquemb 5y ago
      Here are live stats about dai (and including its collateralization)[0] [0] https://daistats.com/#/overview https://daistats.com/#/overview
      - legutierr 5y ago
        Thank you! Can you possibly explain the difference here between "Dai Collateralization" and "Dai Generated by Collateral"? In one chart ETH still predominates, but in the second USDC is the largest portion.
        przeor 5y ago
        answer to your question is here in reddit comments https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comments/nwydtj/what_is_the_point_of_giving_usdc_as_a_collateral/ https://www.google.com/amp/s/amp.reddit.com/r/MakerDAO/comme...

przeor 5y ago

btw. isnt this story about USD I hear for last 25 years? Before it "implodes"? just thinking