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Dai

MakerDao is the company behind Dai, a stablecoin. One DAI is pegged to 1 USD.

Stablecoin

๐Ÿ’ฉ 56%

Reviews for Dai

๐Ÿ”‘ 15 positive | ๐Ÿ’ฉ 12 negative

๐Ÿ”‘

The collateralized model (e.g. MKR, and not Tether) is fundamentally hard to argue against.

2018-05-21 | Full Review

๐Ÿ’ฉ

Let's talk about today's MakerDAO / a16z announcement. for those who missed it, a16z's crypto fund bought 6% of Maker tokens for $15M, at a 25% implied discount to the current price of MKR....I'm sure people think this is a great sign for the project - being able to recruit high quality capital. but, i think this is a massive failure in governance and project management.

2018-09-24 | Full Review

๐Ÿ’ฉ

Dai is backed by collateral (currently ethers). In fact, it is overcollateralized. The obvious risk is that if the collateral becomes worthless then Dai becomes worthless.

2018-05-20 | Full Review

๐Ÿ”‘

MakerDAO is more than a stablecoin project. Trustless margin trading provides public information previously only accessible to exchanges

2018-06-17 | Full Review

๐Ÿ”‘

If you want full crypto-decentralization, DAI still exists and works great.

2018-10-23 | Full Review

๐Ÿ’ฉ

DAI is interesting but I don't think they are quite there yet. I had a chat with one of their devs over coffee a couple of weeks ago. I said that as CDPs are essentially banks, they need to think a bit more about what makes banks stable (or unstable).

2018-05-30 | Full Review

๐Ÿ”‘

We do think [a stablecoin like Dai] is a really important idea, to have a coin pegged to something like the U.S. dollar in order to make the experience more mainstream and accessible, [versus a world rife with] these volatile coins. We think itโ€™s such an important piece of infrastructure that there could be multiple winners.

2018-06-25 | Full Review

๐Ÿ”‘

MakerDAO or something like it will be big. Crypto needs a central bank that's crypto native.

2018-11-15 | Full Review

๐Ÿ’ฉ

Reminder: the DAI stablecoin's "stability" has failed, in the past, when bots stop functioning. Its gravity-defying character amidst a massive price collapse when the whole market is looking for liquidity makes little sense.

2018-12-07 | Full Review

๐Ÿ”‘

A zero knowledge DAI implementation working live on the main chain: https://github.com/AztecProtocol/AZTEC โ€ฆ
Programmable, private, stable. We're slowing approaching the holy grail of currencies.

2018-11-30 | Full Review

๐Ÿ”‘

DAI doesn't scale through arbing.

It scales b/c of a killer app: loans.

I can borrow $10,000 for a year and only pay 50 bucks in fees to do it.

Plus I don't have to sell my assets (e.g. ETH).

For most people there is nowhere on planet earth where you can get a loan that cheap.

2019-01-08 | Full Review

๐Ÿ”‘

Dai survived one of its most significant tests in 2018. โ€œCan Dai survive a market crash?โ€ Asked and answered. Dai survived the 94% drawdown in ETH, and the move from a single-collateral to multi-collateral model should accelerate its adoption in 2019.

2019-01-14 | Full Review

๐Ÿ”‘

Credit has greased economic wheels for millennia, and Maker is the worldโ€™s first 100% software-based, community owned and operated credit facility. As a family of smart contracts operating on Ethereum, the system offers secured loans of equal cost to anyone in the world. The by-product of loan generation is dai, a stablecoin collateralized using on-chain rules and assets.

2019-01-23 | Full Review

๐Ÿ”‘

Daiโ€Š [is] โ€Šan asset-backed, hard currency and the first decentralized stablecoin on the Ethereum blockchain. Effectively, the stablecoin is backed by over-collateralizing the system with other crypto-assets. Despite blathering by bloggers, Dai remains valued at one US dollar, thereby retaining its peg.

Joey Krug, Co-Chief Investment Officer at Pantera Capital

2019-01-08 | Full Review

๐Ÿ’ฉ

Bank deposit-backed stablecoins will win (and have already won) simply because they're more capital efficient, and that trumps everything.

You can get censor-resistance lite from a network of shadow banks willing to back stablecoins. As long as there's some bank worldwide willing to facilitate the issuance of these things, they will exist.

Even the decentralizedโ„ข stablecoins like Dai/Sai clearly have an issuer/administrator . . . so it's not clear that they're any more able to resist coercion than, say, an overseas bank in some tax haven somewhere.

There's a reason there's $4.5b worth of Tether outstanding, $450m of USDC, and only ~$100m worth of Dai. It costs >$1.5 to create $1 of Dai, and it costs ~$1 to create $1 of USDT/USDC. The economics is persuasive.

Consider that banks issuing unaccountable stablecoins might converge, censor-resistance-wise, to administrators of crypto-backed stablecoin systems (which do exist).

In that case, the bank-issued coins are cheaper.

Nic Carter, Partner at Castle Island Ventures and Co-creator of Coinmetrics

2019-11-18 | Full Review

๐Ÿ’ฉ

How Dai works (I think):
1. Have $200 ETH, get +$100 leverage from MakerDAO
2. Have $200 ETH + $100 Dai
3. Oops your ETH crashes to $149
5. MakerDAO liquidates $100 of your ETH (+13% penalty)
6. You get the remaining $36 ETH back
7. You now have $100 Dai + $36 ETH

If you had done absolutely nothing with your ETH, you'd have $149. Now you have $136. Your loss: $13 (plus some minor slippage and tx fees, so maybe $15 in practice).

2019-11-24 | Full Review

๐Ÿ’ฉ

Bank deposit-backed stablecoins will win (and have already won) simply because they're more capital efficient, and that trumps everything....To be fair I think thereโ€™s a big chance something like Dai is able to retain its true censor resistant characteristics and so remains differentiated, but I think itโ€™s likely to stay somewhat niche.

Nic Carter, Partner at Castle Island Ventures and Co-creator of Coinmetrics

2019-11-18 | Full Review

๐Ÿ’ฉ

The only dimension in which DAI is better than USDC or GUSD is censorship resistance. Anonymity provides censorship resistance.

There will be cheap collateralized loans available with fiat coins too, Maker is not unique there. Eg: one could borrow USDC against ETH using Dharma. Therefore anonymous fiat coins are a pareto improvement to MakerDAO and DAI. Literally better in every single way.

2019-02-08 | Full Review

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