Preston Byrne on Dai

a photo of crypto expert reviewer Preston Byrne

Preston Byrne is an independent consultant that advises law firms, corporations, and the public sector on cryptocurrencies. He co-founded and worked as COO of Monax Industries, a blockchain infrastructure provider.

expert reviewed cryptocurrency Dai logo

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

Stablecoin

Dai reviews by Preston Byrne

πŸ”‘ 0 positive | πŸ’© 3 negative

2018

  • πŸ’©

    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

  • πŸ’©

    DAI has shown on at least one occasion to be majority-run by price-fixing bots. Its price peg is maintained on exchanges with minimal to no regulatory supervision. Put DAI on an exchange that aggressively polices wash trading, and if it survives maybe I'll be convinced.

    2018-12-03 | Full Review

  • πŸ’©

    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

More Preston Byrne reviews

Compare Preston Byrne's Dai reviews with other coins.

πŸ’©

Litecoin, a cryptocurrency nobody uses, is now comparable in notional value to the silver market.

2017-12-12 | Full Review

πŸ’©

Just because a document shows a certain bank balance amount on a certain date doesn't mean the funds are unencumbered/free and clear.

An audit, which Tether refuses to provide and which companies large and small undertake on a regular basis, would answer that question.... Additionally, assuming, arguendo, that Tether is backed 1:1 (which I otherwise do not), that much cash sitting in a bank should trade not at par but at a discount commensurate with the credit rating of the bank.

2018-06-20 | Full Review

πŸ’©

Cardano and Marmotcoin currently processing roughly the same number of on-chain txs.

2018-03-10 | Full Review

See all Preston Byrne reviewsβ€”>

More Dai reviews

Compare Preston Byrne's Dai reviews with other expert reviews of Dai.

πŸ”‘

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

2018-05-21 | Full Review

πŸ’©

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

πŸ”‘

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

See all Dai reviewsβ€”>