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Dai, MakerDAO's stablecoin, is over-collaterized through various crypto assets and there's around $6.5b worth of it in circulation right now.
by 0x64 5y ago
Dai, MakerDAO's stablecoin, is over-collaterized through various crypto assets and there's around $6.5b worth of it in circulation right now.
- Ekaros 5y agoCrypto assets? Over-collaterized? That really sounds like something that works, until it doesn't. That is sometime in future when market crashes and everything comes down...
- Groxx 5y agoTo be fair, that's true of any collateral. Housing markets can crash, countries can have hyperinflation, diamonds could flood the market, etc. Gold's sorta safe, unless we find a huge new source, or people stop caring about it beyond its manufacturing uses. But yeah, crypto collateral for crypto is a bit of an "if we die, we die together" decision.
- DennisP 5y agoDai managed to keep a reasonably stable value through the 94% drop of 2018.
- boc 5y agoWait wait wait. Stablecoins are pegged to FIAT currency. They serve as an on-ramp into the crypto ecosystem. Backing stablecoins like Dai with cryptocurrency instead of fiat is super dangerous because you need FIAT in a exchange crisis, not cryptocurrency. If you're trying to keep a 1:1 peg of Dai:USD, but you don't have dollars and only have crypto, then how are you possibly going to maintain that peg? Sell crypto for dollars on a different exchange and use that to maintain the Dai peg? Who the hell is even designing this stuff?