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Any thoughts on Dai stable coin?

• rglullis 4y ago
  It's overcollaterized but highly dependent on USDC/Circle. Last I checked, Circle has not gone through an audit for a long while, but they do make more frequent attestations and are regarded as more trustworthy than Tether.
  • SunlightEdge 4y ago
    Thanks that's v. helpful. I pulled my small investments out of Ethereum into dai a few months back. I think I will close this too for now.
    • rglullis 4y ago
      So, if you are "just" holding DAI it makes little sense to use at the moment. But if you still want to have some exposure to more volatile assets (e.g, ETH) I'd recommend putting it an ETH/DAI liquidity pool from either Uniswap or Loopring. I wrote about the reasoning [0] before, but the short explanation is that such a liquidity pool softens the volatility swings and also allow you to receive a good amount through swap fees. [0]: https://np.reddit.com/r/UniSwap/comments/l0l0cu/making_the_impermanent_permanent/gjuz19q/ https://np.reddit.com/r/UniSwap/comments/l0l0cu/making_the_i...
  • charcircuit 4y ago
    Even if USDC instantly went to $0 DAI would still be overcollaterized.
    • rglullis 4y ago
      That's assuming that USDC going under would not crater with WBTC and ETH, which is a naive assumption.
      • charcircuit 4y ago
        That would be tricky for DAI to handle even if USDC was not used as collateral.
        • rglullis 4y ago
          Yes, but compare with the likely scenario of Tether coming down. DAI may come out okay even if BTC goes down by ~50% and ETH by ~35%.