Nic Carter on Dai

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Nic Carter is a partner at Castle Island Ventures, a venture firm focused on public blockchains. He also created Coinmetrics, a site that provides key metrics for crypto assets.

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

Stablecoin

Dai reviews by Nic Carter

🔑 0 positive | 💩 2 negative

2019

  • 💩

    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 decentralized™ 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

2018

  • 💩

    Maker and Dai. Dai users return capital to MKR owners through the burn mechanism. At this point, the value of MKR (the derivative) is about 18x the value of Dai (the underlying). Channelling my best Matt Levine here: "This seems... wrong."

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

    2018-05-11 | Full Review

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🔑

Monero is one of the few projects with a genuine community.

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

2018-04-30 | Full Review

🔑

Numerai is probably the _only_ example of tokens in a tokenized network being used as a bootstrap mechanism. It's amazing what you can do when you optimize for growth and not short-term enrichment.

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

2018-03-20 | Full Review

💩

it's been 2.5 years since Augur's crowdsale and they haven't shipped yet. their (latest) deadline for public release was Q1 2018. that's about to end.

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

2018-03-28 | Full Review

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🔑

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

2018-05-21 | Full Review

🔑

Synthetic assets have existed for a long time and it's clear that they work, modulo the tradeoff between tail risk and capital inefficiency. That's all stablecoins are....DAI is about getting exposure to the dollar without holding it.

2018-04-21 | Full Review

💩

In crypto it makes sense to do things like MakerDAO which is 300% collateralized while the price of everything goes up. In a black swan, however, this arrangement means the holder of a CDP loses money 3x as quickly on the way down.

2018-04-21 | Full Review

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