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DAI for the rest of us
#8
(2018-02-13, 08:33 AM)Jacob Wrote: I think you are right Cell. We are seeing more of this kind of concept in quite a few coins, and more coins will arrive with promises of price stability. Perhaps many will outright clone Maker and DAI as a starting point for their tokens.

If DAI took over from Tether as the Crypto World's Stablecoin before Tether drags everything down, it would save us all a lot of trouble.

Compared to Tether, DAI is an out and out winner.

Because of the comparatively lower supply, it suffers from a lot of price volatility for a stable coin. This should change if it takes over from Tether.

It just seems to be a bit of risk, just like Tether, where if it tanks, it goes to 0, but if it is successful, it goes to $1 and no more.

There are built-in ways to make money with the Maker system, but these involve leverage and lending. The system involves a form of quantitative easing, as well as collateralized debt positions. These sort of mechanisms usually end up in diluting value for token holders.

As a very temporary store of value, or as the main trading pair on exchanges, the DAI may end up being a great invention.


Something of interest. The Maker token was being sold for less than $25 about a year ago. It is now worth over $1000. Since it is these token holders who have their share diluted as a lender of last resort of things go wrong with DAI currency, there is plenty of room for those token holders to contribute to DAI stability and still make a huge profit.

The Maker token would have been a great investment a year ago. Who knows? It still might be. Of course, nearly everything in the crypto market would have been a great investment a year ago.


The kind of stablecoin I want to see in the future is one where the issuing team regularly buy back their own coin on the exchanges and their own site.

They could construct their own steep Buy and Sell walls to keep the coin going on a very slow but steady straight line growth trajectory.

I know this describes human intervention, but it is possible to program this into blockchain smart contracts. The issuing party would need to own its own business tied to this token in order to both acquire funds and for token buyback.
As it is nowadays I wouldn't recommend buying cryptos backed by a fiat currency. It makes no sense. We are in crypto because we don't trust the fiat system.
What is this thing that builds our dreams, yet slips away from us?

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Messages In This Thread
DAI for the rest of us - by Cell - 2018-02-08, 06:09 PM
RE: DAI for the rest of us - by Hugues - 2018-02-08, 06:52 PM
RE: DAI for the rest of us - by Jacob - 2018-02-09, 10:32 AM
RE: DAI for the rest of us - by Cell - 2018-02-12, 04:40 PM
RE: DAI for the rest of us - by Carsten - 2018-02-13, 08:32 AM
RE: DAI for the rest of us - by Jacob - 2018-02-13, 08:33 AM
RE: DAI for the rest of us - by Hugues - 2018-02-13, 05:16 PM
RE: DAI for the rest of us - by Cell - 2018-02-13, 05:07 PM
RE: DAI for the rest of us - by Cell - 2018-02-14, 07:41 PM
RE: DAI for the rest of us - by Jacob - 2018-02-18, 07:07 AM

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