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DAI is still an extremely important in decentralized finance. It is simply easier to scale a centralized stable coin than a collateralized one as the collateral
by chrisco255 5y ago
DAI is still an extremely important in decentralized finance. It is simply easier to scale a centralized stable coin than a collateralized one as the collateralized one is less capital efficient. The centralized coin has different risk parameters though, such as a bank run scenario or the fact that USDC funds can be frozen at will by Circle.
- vmception 5y agoI didn't write that anything was wrong with any of the three assets mentioned I wrote how they compete on collateral choices which lets people predict their growth/issuance trajectory. MIM grows faster than DAI for a variety of reasons that DAI didn’t have when it launched, which is not likely that DAI can replicate now or at least not quickly.