What's your thoughts about DAI ?

[boomy]

From another thread I learned about stablecoin DAI
https://www.reddit.com/r/MakerDAO/comments/ab72as

link was provided by user @JackAlabama - thank you.

What are your thoughts, would you trust it also if everything goes bad in the cryptocurrency market? I mean if they all fall will this stablcoin keep it's price?

 

[cyprusbanker]

at the moment you get 6,84% in interest APY

I put 5K into it today to follow the earnings 🙂

 

[nomad999]

boomy said:
What are your thoughts, would you trust it also if everything goes bad in the cryptocurrency market? I mean if they all fall will this stablcoin keep it's price?
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from my understanding DAI is backed by Eth so if eth goes to zero dai will be worthless.

 

[crushme2]

not only DAI i think they are backed by USDC too not sure but I read that somewhere. If DAI goes down then you can convert DAI into ETH .

 

[nomad999]

crushme2 said:
not only DAI i think they are backed by USDC too not sure but I read that somewhere. If DAI goes down then you can convert DAI into ETH .
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ah yes true, forgot about this.

https://blog.makerdao.com/usdc-appr...h 17, 2020,type approved by Maker Governance.
damn that's not good, USDC is centralized and can be confiscated. kind of defeat the purpose of a DAO ...

 

[crushme2]

nomad999 said:
ah yes true, forgot about this.

https://blog.makerdao.com/usdc-appr...h 17, 2020,type approved by Maker Governance.
damn that's not good, USDC is centralized and can be confiscated. kind of defeat the purpose of a DAO ...
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I agree on this it sucks, But i dont think DAI got the blacklist/destroy funds function in their code someone correct me if im wrong.

 

[nomad999]

crushme2 said:
I agree on this it sucks, But i dont think DAI got the blacklist/destroy funds function in their code someone correct me if im wrong.
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not sure, i don't think so but it is a decentralized governance so technically everything is possible if it reach consensus among the top MKR token holders.

 

[tomgurl159]

DAI is backed by ETH,BTC,USDC and many other tokens. You can see it real time here: Dai Stats

It is the only stablecoin that is decentralized and censorship resistance.

Right now, there is high interest in DeFi in almost all places. The safest and most conservative is currently aave - Aave ”“ Open Source DeFi Protocol 10-20% APY

 

[FastPony]

I concur with tomgurl. DAI is the only mature and decentralized option.

With DAI you may get into trouble if there's a total crypto market meltdown. (However, several other stakeholders get liquidated before you if you just hold the stablecoin.)

With USDC/Tether/etc. you get into trouble if a government wants you to be in trouble.

What do you prefer?

For reference, here's a tracker that shows how many Tether addresses have been frozen to date: Dune Analytics

The number is still low, but if you look at the dates you'll see that it's increasing rapidly.