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I still like DAI. Nobody seems to have heard of it or remember it exists, but it's a stablecoin that doesn't rely on "trust me bro". It's soft pegged to the dol

I still like DAI. Nobody seems to have heard of it or remember it exists, but it's a stablecoin that doesn't rely on "trust me bro". It's soft pegged to the dollar through its algorithm. While the crypto world seems to have been almost entirely replaced people interested in and having a basic understanding of the technological side of it with people who want to get rich quick while understanding nothing, DAI has remained successfully pegged to the dollar. Not perfect but also not likely to take a permanent dump.

greenthrow 4y ago
Algorithmic stablecoins are not a good idea. See: Luna/Terra.
- m00dy 4y ago
  Algorithmic stable coins are the future, they just need a reliable utility.
  - polygamous_bat 4y ago
    Are you saying... they're a solution looking for a problem?
- yokem55 4y ago
  The main difference between MakerDAO/DAI and Luna/UST is that Maker doesn't accept their native token as collateral. You have to use collaterals external to the protocol which won't inflate in response to where DAI is relative to a $1 peg. In contrast, UST only had LUNA as collateral, and ended up minting more and more LUNA as UST fell off it's peg. That's not to say that DAI doen't have it's own risks as they have a lot of potentially censorable USDC as collateral, there could be situations where they can't liquidate borrowers fast enough if a collateral falls in USD price too fast, and they run their own oracles which could fail or misbehave. Not to mention the DAO has a fair amount of governance drama on a regular basis. But those risks are quite distinct from what took luna/ust down.
- G3rn0ti 4y ago
  > Algorithmic stablecoins are not a good idea. See: Luna/Terra. DAI is not an algorithmic stable coin. (1) While DAI is based on smart contracts it is backed by a mixture of other cryptos and stable coins (not Tether but USDC, IRC). If you really want to keep money in the form of stable coins please use either DAI or USDC and not Tether. (1) https://kriptomat.io/cryptocurrencies/dai/what-is-dai/ https://kriptomat.io/cryptocurrencies/dai/what-is-dai/

greenthrow 4y ago

Algorithmic stablecoins are not a good idea. See: Luna/Terra.

m00dy 4y ago
Algorithmic stable coins are the future, they just need a reliable utility.
- polygamous_bat 4y ago
  Are you saying... they're a solution looking for a problem?
yokem55 4y ago
The main difference between MakerDAO/DAI and Luna/UST is that Maker doesn't accept their native token as collateral. You have to use collaterals external to the protocol which won't inflate in response to where DAI is relative to a $1 peg. In contrast, UST only had LUNA as collateral, and ended up minting more and more LUNA as UST fell off it's peg. That's not to say that DAI doen't have it's own risks as they have a lot of potentially censorable USDC as collateral, there could be situations where they can't liquidate borrowers fast enough if a collateral falls in USD price too fast, and they run their own oracles which could fail or misbehave. Not to mention the DAO has a fair amount of governance drama on a regular basis. But those risks are quite distinct from what took luna/ust down.
G3rn0ti 4y ago
> Algorithmic stablecoins are not a good idea. See: Luna/Terra. DAI is not an algorithmic stable coin. (1) While DAI is based on smart contracts it is backed by a mixture of other cryptos and stable coins (not Tether but USDC, IRC). If you really want to keep money in the form of stable coins please use either DAI or USDC and not Tether. (1) https://kriptomat.io/cryptocurrencies/dai/what-is-dai/ https://kriptomat.io/cryptocurrencies/dai/what-is-dai/