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The collateral for DAI are hihgly crypto correlated - 43.8% USDC, 32.1% ETH, 11.3% WBTC, 5.9% USDP, and others. ETH and WBTC are just Ethereum and BTC, both of
by ww520 4y ago
The collateral for DAI are hihgly crypto correlated - 43.8% USDC, 32.1% ETH, 11.3% WBTC, 5.9% USDP, and others. ETH and WBTC are just Ethereum and BTC, both of which have dropped considerably recently. USDP somehow dropped to ~$0 since April. USDC is sworn to be 100% USD backed so let's take that at face value.
DAI is said to have 150% over-collateralization. ETH & WBTC have dropped more than half. Let's say just off by 50%. USDP and others seem got wiped out. $150 x (43.8% + 32.1%/2 + 11.3%/2 + 0%) = ~$98. That means $150 of collateral is worth only ~$98 now, not enough to back $100 of DAI for 1-to-$1 redemption.
Looks like DAI is at the verge of de-pegging.
- somebodythere 4y agoDoubtful, Dai is automatically destroyed as the value of its collateral falls via the mechanisms of liquidations and loan paybacks.
- enimodas 4y agoI'm sorry but you don't know what you're talking about. Look into how Dai works, or check daistats.com
- fastball 4y agoDAI's current collateralization ratio is 157.67%. You can verify this straight from the Ethereum mainnet.
- Jommi 4y agoYou have absolutely no idea at all what you are talking about
- fkf 4y agoUSDP which DAI has as collateral is at $1, there exists a different USDP coin which dropped to $0 in April, but that USDP was used hardly anywhere.
- whimsicalism 4y agoNope, you are completely wrong. Wrong USDP, no discussion of how vault liquidation prevents this from happening, Dai is overcollateralized right now at 159% not 98%, USDC is not necessarily crypto correlated, Dai doesn't have $1-to-$1 redemption as it is not a centralized stablecoin, etc. etc.