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Reddit Posts

r/CryptoCurrencySee Post

Diversification versus focus

r/SatoshiStreetBetsSee Post

Top 5 cryptocurrencies to watch this week: BTC, MANA, MKR, ZEC, KCS

r/CryptoCurrencySee Post

What you need to know about crypto loans

r/CryptoCurrencySee Post

Thinking of dumping coins before April to tax harvest losses

r/CryptoCurrencySee Post

Diversification versus focus

r/CryptoMoonShotsSee Post

| Mr. Krab Coin |Launching any Moment| || TAX 6% | |Will be Renounced | Based Dev|

r/CryptoMoonShotsSee Post

| Mr. Krab Coin |Fair Launching in 1 hour| || Buy TAX 3% |Sell Tax 3% |Will be Renounced | Based Dev|

r/CryptoMarketsSee Post

Top 3 Cryptos to Look Out for this Month: ATOM, MATIC, MKR

r/CryptoCurrencySee Post

Diversification versus focus

r/CryptoMarketsSee Post

Basic Primer to Token Design of DAI (MakerDAO) | The OG Stablecoin

r/CryptoCurrencySee Post

MakerDAO fully transitioned to decentralized governance in July 2021. MKR holders demonstrated their power this week by laying off the content team.

r/CryptoCurrencySee Post

What the next crypto bull run will look like

r/CryptoCurrencySee Post

The best time to convert assets could be now

r/CryptoCurrencySee Post

Diversification versus focus

r/CryptoMarketsSee Post

Calculated Risks are not that intimidating when you know what you're doing

r/CryptoCurrencySee Post

Calculated Risks are not that intimidating when you know what you're doing

r/CryptoMarketsSee Post

Bonding Curve Algorithms for Autonomous Market Makers (DEX)

r/CryptoMarketsSee Post

Following your crypto influencer will most of the time give you no valuable insight

r/CryptoCurrencySee Post

Following your crypto influencer will most of the time give you no valuable insight

r/CryptoMarketsSee Post

Basic Primer to Token Design of DAI (MakerDAO) | The OG Stablecoin

r/CryptoMarketsSee Post

Sad reality: crypto won't make you a millionaire

r/CryptoMarketsSee Post

Sad reality: crypto won't make you a millionaire

r/CryptoCurrencySee Post

Stuck with binance bep2 tokens on private wallet with no way to convert or to get a binance account (to my knowledge, help aha)

r/CryptoCurrencySee Post

True Value of DeFi Coins

r/CryptoCurrencySee Post

Important factors that needs to be taken into account when investing in crypto

r/CryptoCurrencySee Post

Should you focus on investment strategy?

r/CryptoMarketsSee Post

Instead of going to therapy people are bringing their gambling addiction into crypto and its sad to see.

r/CryptoMarketsSee Post

To anyone still hesitant about investing in crypto. Invest a very small amount just for fun.

r/CryptoCurrencySee Post

Are there any crypto coins that have been fully mined? What will happen to Moons?

r/CryptoCurrencySee Post

Coins that keep going up with no dips are the ones you should be scared of

r/CryptoMarketsSee Post

Coins that keep going up with no dips are the ones you should be scared of

r/CryptoCurrencySee Post

I spent 5 hours researching what a DAO is so you didn’t have to.

r/CryptoCurrencySee Post

Futures trading is basically gambling but on steroids.

r/CryptoMarketsSee Post

Playing futures with Bitcoin is a very dangerous game. And what happened today is a clear example of that

r/CryptoCurrencySee Post

Playing futures with Bitcoin is a very dangerous game. And what happened today is a clear example of that

r/CryptoMarketsSee Post

Trading makes some nice profits, but I feel like staking gives more realistically sustainable profits for long term.

r/CryptoCurrencySee Post

The Ultimate Stablecoin of them all?

r/CryptoCurrencySee Post

I hate everything corporate, and thanks to DeFi, I never have to deal with that again.

r/CryptoCurrenciesSee Post

Thank you DeFi for helping a regular Joe like me change the course his life.

r/CryptoCurrencySee Post

Governance tokens still haven’t shown their full potential yet

r/CryptoCurrencySee Post

Governance tokens still haven’t shown their full potential yet

Mentions

My blue chips: BTC, ETH, MKR, AAVE, ATOM. My top 5, and I'll stand by them.

I'm not going to get into "Is this the bottom" or guessing when the bear market might end. Nobody knows. But what we can make an educated guess on, is what coins might survive the bear market. So BTC and ETH are inevitable. I have strong belief in MATIC and XMR long term (which I plan to HODL all the way), but I expect to see ENJ, XTZ and MKR survive into the next bull run. Any thoughts?

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/v2re03/monthly_optimists_discussion_june_2022/).

DAI/MKR is a great algorithmic stablecoin system

Mentions:#DAI#MKR

Talking about DeFi, is AAVE the only lending protocol that works on multiple chains? I may be wrong, but both MKR and COMP are ETH only right?

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/v2re03/monthly_optimists_discussion_june_2022/).

A lot of these stake based governance projects end up like this. Even good projects like MKR. There are a few people with a large amount of tokens and small holders get apathetic because they feel like they only waste gas voting. Then the whole thing quickly becomes centralized. I am beginning to think governance tokens don't work and smart contacts should follow the open close principal. Closed for modification open for extension.

Mentions:#MKR

This wasn’t a Solana vote. It was the first vote by the Solend DAO. Has zero to do with the on-chain SOL governance. They are literally begging the community to be allowed to liquidate his account off chain because on-chain liquidity is so low a liquidation of this would cause a massive drain on the entire chains dex liquidity, possibly ending with usdc/t holders on Solend losing their deposits from massive slippage on the dex arbitration by liquidator bots. AAVE/MKR on ETH are trying to do the same. This is all just attempts to liquidate with help from CEX liquidity as to avoid draining every dex and massive slippage losses on chain. Defi market risk assessment algorithms are incredibly simplistic, and compared to the ones in CeFI, are absolute shit. And can lead to stuff like this in never before scene circumstances.

Doesn’t matter, MKR/DAI system is very safe and USDC will be auto liquidated if it ever loses its peg.

Mentions:#MKR#DAI#USDC

Except thats not what the discussion is about. It’s about a certain lending market taking drastic actions, which they are doing on all chains currently. MKR/AAVE on ETH is the largest example trying to liquidate OTC instead of on chain, because on chain liquidity is drastically lower than off-chain, and defi oracles and risk prevention algorithms have shit on tradfi.

Mentions:#MKR#AAVE#ETH

BTC and ETH extremely undervalued imo. 370b and 120b mcap while the US yearly budget alone is 6t Some alts still overvalued like MANA which has 1b mcap and like 50 daily players playing game that looks like it was made by a 13 year old Some alts undervalued like MKR which has 7.5b assests locked and and mcap of 650m which makes the mcap/TVL ration only 0.09 So pretty much a diverse situation but the market is still irrational so most coins are moving similarly My strategy is to find those undervalued ones and keep investing

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/v2re03/monthly_optimists_discussion_june_2022/).

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/v2re03/monthly_optimists_discussion_june_2022/).

The DAI peg is a priority so I think MKR holders made the right decision Better safe than sorry

Mentions:#DAI#MKR

Good point but most blockchains worth using are EVM compatible as this allows dapps to build easily. I also hold BTC which is useless, ADA which is also useless, DOT, MKR, and a few Oracles.

MKR and YFI are micro caps compared to BTC

Mentions:#MKR#YFI#BTC

Definitely MKR/DAI I think Alchemix is super interesting and would hate to see it fail. Thorchain - a 1 dapp chain, cross chain DEX capable of swapping ANY crypto Fantom - survive! Helium. Not really possible, at least I don't see how a global radio physical infrastructure network for relaying IoT data could fail. But this is one of the few things that has been a real game changer for how real world physical infrastructure can be built, operated, and maintained. This is one of the gems I feel like that really demonstrates just how transformative crypto and blockchains can be in the real world. Audius. Hurry up and let me pay a subscription fee already so these amazing artists can get paid

Mentions:#MKR#DAI#DEX

Not really true. ATOM, DOT, ADA, LINK, MKR, IOTA were all around and building back in 2017-2018…

DOT, ATOM, ADA, LINK, MKR, IOTA, MATIC, SOL…. Thats prob 25% with 25% ETH and 50% BTC.

I might open a position in MKR but still need to look further into it.

Mentions:#MKR

Looking into MKR, the only incentives for holding is governance and potential price appreciation from some form of burning method using the fees from loans. The downside is the minting of more MKR if the collateral goes down in price and diluting current holders. Anything else I’m missing?

Mentions:#MKR

Crypto idiots will never hold MKR

Mentions:#MKR

Been holding and accumulating alts such as ATOM, DOT, SOL, ADA, IOTA, LINK, MKR, AVAX, etc for years (since early 2017-2018). Have about 50% in BTC and 25% in ETH. Held all the way up in 2017, then all the way down in 2018-2020, then all the way up in 2020-2021. Unfortunately did not sell. Looks like I will be holding for at least 3-4 more years. Certainly NOT selling with fear and greed index hovering around 10/100. I did expect this to be at least around a 10 year investment when I started though.

It sucks to hit the top of a project. I got MKR for $4200, ZRX for $1.25, AMP at a buck. I am the top whisperer.

Mentions:#MKR#ZRX#AMP

I got some Luna on the cheap recently and I’m treating it as gamble! The risk is just too high to properly invest in it! This said it’s important to understand how the new model would work and how much of the community support it. DAFI suggested that a synthetic reward system could have saved Luna. A more down to earth model on Anchor could also avoid its implosion (but the greed from its returns is what made it grow so much on the first place). Less leveraged or even better o exílate rallies model would be more interesting and having an ecosystem with major use cases like (ETH-MKR-DAI) model would be much more interesting and safe other than the mais use of Luna being its stablecoin. That feels Ponzi

MKR/DAI is the actually decentralized one

Mentions:#MKR#DAI

Anytime ETC or MKR get a snake head swing up, it's a sell signal to me. I took advantage of it yet again today. Some macro swings are just worth it.

Mentions:#ETC#MKR

Falls into a few categories 1. There are rivals to Tether that have a 'backing' token, which can absolutely be pumped by a flight from USDT to their stable of choice (not everything is backed by faith/bullshit - for example MKR behind DAI) 2. well meaning people who are new to the space and think they're warning people about a common concern we've all had for at least 5 years 3. non-technical people who can't see that a stable backend by cash and IOUs is different to a 'smart' stable that can be attacked on-chain 4. salty UST holders who want everyone else to suffer 5. shitposters and troublemakers 6. moonfarmers

The LUNA crash was uncalled for. Shook the whole market. I don't know if MKR could fill the spot there. I've heard of DAI but I'd personally invest in projects like BTC, ETH and DVDX, latter for hybrid tokens, particularly. Also, RIDE for their association with Audi

Buying the dip means different thing to different people. DCAing is still the best strategy to make the best out of bear markets like this. Interestingly, some altcoins seem to be doing quite well in terms of price actions. A good example is Railgun which has maintained a consistent price over the month. I believe it has something to do with innovations it just introduced to privacy in decentralized finance. MKR is another one that has stood out in the market. I believe it is more reasonable to spend on dips when a good resistance has been exhibited to an extent, especially for low and mid caps.

Mentions:#MKR

I like it. I think a big year is in the making for MKR too.

Mentions:#MKR

I see MKR filling the LUNA gap. Anyone else seeing MKR becoming bigger? Their DAI pays .15% yield on Coinbase and is a solid stablecoin.

Mentions:#MKR#LUNA#DAI

TIL that DAI:MKR = UST:Luna. But with some collateral involved as well.

Mentions:#DAI#MKR#UST

People who make DAI competitors hate DAI. People who are ashamed they didn't accumulate vast quantities of MKR in its infancy. And so on. Remember "bye bye DAI" when everyone was shilling MIM?

Mentions:#DAI#MKR#MIM

If you want control over the coin then you should be staking in a POS coin. Likewise if you want control over a dAPP (like say Maker DAO) then you should hold governance tokens (MKR). If you don't then you are saying "I am cool with what other people decide".

Mentions:#POS#DAO#MKR

MKR looks like it’s doing well vs BTC and ETH. Any opinions on its likelihood to continue to decouple from them?

Mentions:#MKR#BTC#ETH

exactly 0 parts of DAI are decentralized [https://i.imgur.com/mB5dzFr.png](https://i.imgur.com/mB5dzFr.png) the "worth" of collateral depends on value ratio of collateral which is based on trusting feeds and what controls those feeds (centrally premined MKR) and centrally controlled and easily centrally editable state on premined eth known specifically for already making similar changes based on Vitalik's mood [there's a reason they are called ethtards and not people](https://imgur.com/a/JM66BEO?nc=1)

Mentions:#DAI#MKR#JM

because DAI is 100% centralized and practically malware just like MKR and ETH and thus has literally 0 reason to be used, 0 advantages, and guaranteed dishonest illiterate creators with countless disadvantages over just using bank of america or a random person on a street issuing you IOU. feel free to call random person an oracle or dev team if it helps as it would offer exactly same trust assumptions and security as dai. there is exactly 0 creatures in existence with less intelligence than an ethtard, counting to [1 center](https://imgur.com/a/JM66BEO?nc=1) poses a mathematical challenge that 0 of them can overcome

multiple parallel measures of ensuring trust maximization like using 100% centralized premined eth known for trivial confiscations/rule-changes secured by 100% centralized premined MKR with 100% centralized price feeds by trusted authorities and 100% centralized bank coins like usdc. the only thing missing anywhere in connection with dai or anything touching it is decentralization of control, just that little thing which exactly 0 ethtards could ever understand.

Mentions:#MKR

Bought MKR once at $168

Mentions:#MKR

You've got some brilliant selections there particularly with MKR from MakerDAO and MANA from Decentraland which is also another virtual world of DAO as Decentralized Autonomous Organizations are really game changers in the crypto space at the moment with several DAOs created by DAO constructors like XDAO.

Mentions:#MKR#MANA#DAO

I think $RSV ($RSR) and $DAI ($MKR) are pretty good

I have my eyes on MANA and MKR tokens and I'm definitely going to stock them up today. Though I'm considering adding more LUNA and RFOX to my bag, to keep enjoying amazing yield farming returns on the Rfox ecosystem.

It was going to be MKR but I bought earlier today.

Mentions:#MKR

So all coins will get wrecked since they either follow btc or eth. Hope you have Dao token like MKR in your portfolio they March on the best of their own drum

Mentions:#MKR

Do you guys think the whole LUNA downfall could be repeated with MKR/xdai since they use a similar mechanism?

Mentions:#LUNA#MKR

Yes, Dai is by no means bulletproof, but it does have mechanisms in place such that any depeg is likely to be temporary, and has a lot more barriers / backstops before it has to resort to diluting the sister token, MKR (analogous, but not quite the same mechanics, as LUNA). The lack of a direct DAI -> MKR redemption mechanic makes things a good deal safer (UST's death spiral was largely enabled by the ability to directly redeem UST for LUNA). First off, there's significantly *more* collateral in the system than just 1:1 (100%) backing. E.G. ETH vaults have a minimum collateralisation of 150%, but are typically much more collateralised (as being at exactly 150% means you'd be liquidated in the slightest of dips). Note this is a bit of a simplification, there's actually several different ETH pools which have different parameters (debt ceiling, required collateralisation), along with plenty of other collateral types. You can see the full breakdown of the system's collateralisation here: https://makerburn.com/#/rundown Since liquidation starts while the backing is still well above 100%, it's likely that the debt (remember all Dai in circulation *is* debt created against collateral) of that vault would be repaid in full without needing a complete liquidation. In the event of bad debt; i.e. ETH and other volatile collateral crashes faster than liqudiations can keep up, there's still a few more mechanisms in place to repay bad debt and keep the system solvent. One of these is the stability buffer, a big pile of excess funds accumulated from fees collected by the protocol. At the time of writing, there's 175M in the stability buffer. It's only in the event that the stability buffer is depleted, and bad debt still remains in the system, that debt auctions are run. In these debt auctions, people bid an amount of MKR they're willing to accept in return for paying some of the debt of the system. The MKR paid out in these auctions is new issuance, diluting existing holders, and thus far has proven a strong motivator for governance to be quite conservative with how much risk the system takes on (expressed through which types of collateral are accepted, what level of collateralisation is required, what the debt ceiling is for each collateral type, and so on).

The thing is why care about DAI if you trust USDC or ETH? "Top 10" crypto can have flash crashes, let's not pretend being in the top 10 magically makes that asset immune. Luna was in the top 10 along with UST assuming you are talking about what some of the exchanges call "top 10". The thing is risk is relative. People thought tether was pretty safe and ignored the naysayers which is why it was so popular. DAI has similar risks but it's a bit more diversified. The thing is though most of the market moves similarly which means that diversification loses a bit of meaning. USDC is somewhat backed by fiat and other assets held in fiat banks. My guess locked up in bonds, CDs or basic savings accounts. **All** crypto assets are volatile crypto assets. The only thing not volatile might be USDC, but it's certainly not a majority. DAI is backed by MKR which is their governance token. They do say it's possible to have an event where it comes crumbling down which is a plus in my book. At least they are being honest. Do I think DAI is going to crash like UST? Depends on how much money a group of rich people might think they can make.

Two reasons 1) Governance. You dismiss it but there is no other decentralized alternative. Maker DAO simply couldn't work without MKR. There are constant debates and changes to risk profiles all those decided by voting MKR tokens. 2) $$$$ If someone comes up with a gheewhiz next thing the easiest way to monetize it and not have it be some altruistic venture is via a token.

Mentions:#DAO#MKR

I sold all my MKR when it briefly hit 5k (CAD). Did I ever luck out. Now I've just got a huge fucking bag of 288 Luna I can't sell

Mentions:#MKR

MKR (along with no brainers ETH and BTC)

Mentions:#MKR#ETH#BTC

>DAI if you're down for an algo stable ​ It's not an algo stable, otherwise your post is solid. It is overcollateralized by mainly USDC and ETH (see [https://daistats.com/](https://daistats.com/)) and only when that collateral fails to make the protocol whole would it even begin to consider using MKR as a backstop. The centralized aspect of course coming from the fact that it is heavily collateralized by USDC. This was done to keep DAI firmly on peg, for now. There are plans in motion to reduce reliance on USDC.

Yes but until MKR collateralized with non centralized stables I doubt its resiliency in black swan events (regulatory attack UsDC can be frozen).

Mentions:#MKR

MKR bubble, been green for like a week. seems like their protocol is working out to burn MKR and keep DIA stable. At least until it doesn't lol. Bear market, risk off, set your stops and take your profits but looks good.

Mentions:#MKR#DIA

What’s the difference between Luna and MakerDAO? Do they have the same mechanism between MKR & DAI and LUNA & UST?

Where do you stake it? How stable do you think MKR is compared to YFII?

Mentions:#MKR#YFII

I'm never letting go of my MKR Remember only around 900K or so out there ☮️❤️😎🚀

Mentions:#MKR

MKR pumps then market dumps. Same as it ever was.

Mentions:#MKR

Not really - MKR up 50% and BNB up 20% ☮️❤️😎🚀

Mentions:#MKR#BNB

MKR up almost 55% and BNB up 20% Def turning things around nicely in my portfolio at least. ☮️❤️😎🚀

Mentions:#MKR#BNB

Maybe this will be the start of the alt szn we've all been waiting for with BNB and MKR kicking things off ☮️❤️😎🚀

Mentions:#BNB#MKR

Just after I converted my BTC to MKR this morning. Paper🙌hands.

Mentions:#BTC#MKR

Anybody know why MKR is pumping?

Mentions:#MKR

MKR pumping is the market sell signal.

Mentions:#MKR

Made a couple of 10% trades on GAL. Other than that just accumulating MKR for a swing trade

Mentions:#GAL#MKR

Oh, I kind of like MKR. Maybe I should look more closely.

Mentions:#MKR

My exposure to real estate is through MKR vaults. THANKS ELON!

Mentions:#MKR#ELON

The MKR chart is wild. $2,800 to $900 in under a dsy

Mentions:#MKR

Hmm, for the bags I hold most confident in ADA & DOGE. Honorable mention to DEFI "blue chips" I own like MKR, AAVE, and UNI. But if I could trade back the ETH I spent for my UNI right now I would =p For ones I do *not* own, I am feeling confident about (and considering picking up at some point) FTX Token (think it'll be the next Binance coin pump) and maybe ERG.

“mint MKR as a backstop” sounds a lot like Terra.

Mentions:#MKR

>It’s backed by an overcollateralized basket of crypto and in worst cases can mint MKR as a backstop. But those collaterals only matter if arbitrageurs can get to them easily, no? Terra couldn't restore peg quickly because the system was overloaded and people panicked when peg didn't restore quick enough. ETH is an expensive and busy network. If arbitrageurs can't move quickly enough, the Terra thing can repeat itself on DAI. Plus, what is overcollateralized today doesn't mean it is tomorrow. Downward crypto prices can change that, no?

Mentions:#MKR#ETH#DAI

Dai isn’t an algo stablecoin though. It’s backed by an overcollateralized basket of crypto and in worst cases can mint MKR as a backstop. It has weathered many storms before. There is a strong history of resilience in times like this. If dai fails we have way bigger problems to worry about

Mentions:#MKR

That doesn't even make sense. DAI is just DAI+MKR is closer to the truth.

Mentions:#DAI#MKR

True. It’s the hard part. I’ve been watching a lot of shit coins and they all seem to have blow off tops to wreck short sellers. ENS, GMT, MKR (today), all had insane blow off tops and dumped immediately. We talk 5% swings in 1 min

Mentions:#ENS#GMT#MKR

Maker (MKR) / DAI seem to be ‘winners’ here too. MKR up 20% today.

Mentions:#MKR#DAI

Wtf is MKR and why did it pumped 2x in a day like this?

Mentions:#MKR

Alts follow BTC price action. So, better to look at BTC before entering or exiting alt positions. Find correlation between alts, like whenever luna pumps, MKR dumps and vice versa.

Mentions:#BTC#MKR

What "controls" DAI so to speak are the MKR holders through the MakerDAO. USDC being the biggest backing is not good because *USDC* is centralized, but DAI remains at the hands of MakerDAO governance.

Mentions:#DAI#MKR#USDC

No, MKR is the governance token, DAI is the stablecoin that is governed. With MKR you can participate in MakerDAO governance by voting. DAI can't be used for governance of MakerDAO; it is instead governed by the MKR holders through the MakerDAO. You can read more here: [https://makerdao.world/en/faqs/dai](https://makerdao.world/en/faqs/dai) and here https://makerdao.world/en/faqs/mkr-token

Mentions:#MKR#DAI

MKR is the governance token of MakerDAO, and since DAI is governed by MakerDAO, it makes sense that MKR is going up.

Mentions:#MKR#DAI

DAO Killer, everyone. Switch back to $MKR. It's going up! 🚀

Mentions:#DAO#MKR

MKR might be interesting though

Mentions:#MKR

Sorry to hear that fella. I lost a lot when trying high leverage before, it sucks. 5x is max I use now! At least you're at break even, lots of people end up down bad or completely nuked. GL with MKR trade

Mentions:#MKR

Thats great. I am doing pretty bad tbh. Had a decent short on luna from 80 to 40 but lost a few high leverage trades trying to catch the bottom. Ended up breakeven. Looking at MKR now for a long

Mentions:#MKR

Yes. DAI and MKR are the way (I know, I know, ETH gas fees are high….).

Mentions:#DAI#MKR#ETH

MKR hodlers unite!

Mentions:#MKR

But FTM. Buy ENJ. Buy MKR. Coins that are not absolutely not going away. Or don’t buy them. Be defeatist and don’t buy anything.

Mentions:#FTM#ENJ#MKR

Buy FTM. Buy ENJ. Buy MKR. Or be defeatist and don’t

Mentions:#FTM#ENJ#MKR

I don't *know*, and that's kinda the problem itself, because it's a self fulfilling prophecy. With Dai for example, I know *exactly* what will happen if it loses its peg and selling overcomes the arbitrageurs - liquidations will occur, then the DAO will play with the DSR, then if these fail, auto-minting MKR is the final backstop to stop the bleeding. There's *certainty* in this mechanism because it's all in verifiable code. There's an amount of *uncertainty* with UST because there's actors whose decisions impact the tokenomics pretty significantly. Compound it with knowledge-disparity (newer protocol, less battle tested, less known) and people may lose confidence even if the loss in confidence is ultimately unfounded.

Solana. Doge. Matic. Algo. MKR

Mentions:#MKR

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/ttir1a/monthly_skeptics_discussion_april_2022/).

#Dai Pro-Arguments Below is an argument written by mic_droo which won 1st place in the Dai Pro-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > DAI is a stablecoin. But it's not just any stablecoin. Other than most stablecoins it's decentralized, meaning it's ["not created or redeemed by any central, third-party gatekeeper or group of gatekeepers"](https://blog.makerdao.com/why-dai-is-the-most-used-cryptocurrency-in-the-defi-space/). > > It is currently the [fifth biggest stablecoin](https://www.coingecko.com/en/categories/stablecoins) - and even though it is, of course, pegged to fiat - 1 DAI is 1 USD - it is backed [with crypto and not fiat as collateral](https://ethereum.org/en/stablecoins/) - the biggest stablecoin that's not backed by fiat. At the time I'm writing this, it is mostly backed by [USDC, ETH, WBTC and USDP](https://daistats.com/#/overview). That kinda sounds risky, right? I mean we all love crypto, but how can a stablecoin backed by crypto be, well... stable? > > MakerDAO found a way. DAI was started at a really bad time - December 2017, right before the end of the bull run. DAI was only backed by ETH back then, and while ETH lost 80% of its value in the following months, [DAI remained extremely stable](https://fortune.com/2018/10/01/crypto-ethereum-stablecoin-vc-andreessen-horowitz/). And it has remained stable until today, it usually hovers around $1, its ATH and ATL are similar to other big, centralized stablecoins. > > How does it manage to do that? Well, it is regulated by a system of smart contracts. [If DAI goes too far above or below 1 USD, MKR is created or burned](https://decrypt.co/resources/dai-explained-guide-ethereum-stablecoin). So you don't have to trust any person or group to keep the price stable - an algorithm ensures it. > > DAI is [one of the biggest projects in the DeFi-space.](https://www.coingecko.com/en/categories/decentralized-finance-defi) and has "decentralized" written all over it, but it's also available on [most big centralized exchanges](https://www.coingecko.com/en/coins/dai#markets). > > DAI is said to be very secure, [MakerDAO conducts extensive audits and ensures DAI's security](https://www.gemini.com/cryptopedia/dai-stablecoin-what-is-dai-token). As far as stablecoins are concerned, I think DAI is a pretty good deal! ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4yn1/coin_inquiries_round_dai_proarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds.

r/CryptoCurrencySee Comment

What do you guys feel about MKR

Mentions:#MKR
r/CryptoCurrencySee Comment

Is MKR worth investing in? And would anybody consider it a competitor of LUNA?

Mentions:#MKR#LUNA
r/CryptoCurrencySee Comment

tldr; Helium (HNT), Maker (MKR), Waves (WAVES), Chiliz (CHZ) and Uniswap (UNI) are the five cryptocurrencies that have decreased the most over the past week. HNT is decreasing alongside a descending resistance line, while MKR is trading above support at $1,700. CHZ has broken down from an ascending support line. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

r/CryptoCurrencySee Comment

At the time it wasn’t, the majority of Dai collateral was Eth and it had already fallen from 1400usd to 150 then it got a sudden fall to 80Usd in under a day. It did de peg a little bit due to a failure with the liquidation bots(which has since been fixed) but it was brought back to peg by selling MKR which is the second order defense for the dai peg.

Mentions:#MKR
r/CryptoMoonShotsSee Comment

I think Nexo is best at listing highly potential coins, they recently listed $MKR and I heard that using Nexo's card, you can now transact with it with no fees, free ATM withdrawals plus up to 2% in crypto rewards. Nexo's card is the future!

Mentions:#MKR#ATM
r/CryptoCurrencySee Comment

#Dai Con-Arguments Below is an argument written by MrMoustacheMan which won 1st place in the Dai Con-Arguments topic for a prior [Cointest](/r/CointestOfficial/wiki/cointest_policy) round. > #DAI Con Argument > > *Disclaimer: my stablecoin holdings are spread across DAI, UST and USDC. As I take more profit this year DAI will become a bigger holding, but for now it's less than 1% of my portfolio.* > > - DAI is notable as a decentralized stablecoin. It basically [functions as a loan taken against ETH or other collateral](https://academy.binance.com/en/articles/a-guide-to-makerdao-and-dai). > - In a [market full of centralized stablecoins](https://www.theblockcrypto.com/data/decentralized-finance/stablecoins) the appeal is clear: no need to trust a central authority (see [USDT Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og1sms/rcryptocurrency_cointest_top_10_category_tether/)) or worry about [getting blacklisted](https://cryptobriefing.com/100000-usdc-blacklisted-highlighting-importance-decentralized-stablecoins/). > > - That being said, nothing is risk free and there are some potential aspects of DAI to consider: > > ##Backing > > - As the name implies, 'multi-collateral' DAI is [backed by loans taken against multiple assets](https://share.streamlit.io/tadzz/maker_dai_collateralization_2/main/dai_collateral_app.py), not just ETH. I think a [multi-collateral model](https://makerdao.com/en/whitepaper/#in-mcd-we-trust) helps to diversify risk instead of being backed by just one asset. > - But looking at the data you'll notice that a not insignificant amount of [DAI is generated from USDC](https://daistats.com/#/overview) and other centralized stablecoins. > > - [USDC was added to help stabilize DAI's peg back in March 2020](https://news.bitcoin.com/makerdao-devs-debate-usdc-dai-liquidity-issues/). I think this decision exposed DAI to some risk, given the non-zero possibility of issues with USDC/Circle, such as concerns about regulation, rehypothecation etc. (see [USDC Con arguments](https://np.reddit.com/r/CryptoCurrency/comments/og2nfy/rcryptocurrency_cointest_top_10_category_usd_coin/)). Would DAI's peg/liquidity be impacted if the SEC came down on Circle tomorrow? > > - Does this mean that DAI loses some decentralization street cred? No, [according to MakerDAO]( > https://blog.makerdao.com/busting-makerdao-myths-seven-misconceptions-about-dai/). > > - However, some community members saw it differently. One forum member voiced concerns at the time: > > >"[there are new economical risk that can sneak in with such a solution and mixing it with an otherwise decentralized system ... I am in this project for it’s pure decentralized nature and would not want to see it becoming inter-mixed with USDC. If it were, I would rather just want to stick with USDC altogether.](https://forum.makerdao.com/t/onboarding-usdc-as-collateral-to-mitigate-liquidity-risk/1570/16)" > > - So if you're a purist, you may not like DAI's 'contamination'. If you don't really care, you may prefer a [stablecoin that already has a seal of approval from regulators](https://paxos.com/2021/07/21/a-regulated-stablecoin-means-having-a-regulator/) (credit to /u\/norbit11 [for that info](https://np.reddit.com/r/CryptoCurrency/comments/op2au4/daily_discussion_july_22_2021_gmt0/h66dz91/?context=3)). > > - Anyway we know [decentralization is a spectrum](https://nopara73.medium.com/few-words-on-decentralization-and-anonymous-payments-160782d30b9e), not a binary distinction. And it's actually the political axis of decentralization which I find more concerning, which takes us to... > > ##Monetary policy > > - The rules that govern how DAI gets minted/collateralized and how it retains its $1 peg are sort of complicated for a lay user. > - That's not a strong con in and of itself - most people interacting with smart contracts don't know how they work, you don't need to have a deep understanding of [how AMMs function](https://np.reddit.com/r/ethereum/comments/55m04x/lets_run_onchain_decentralized_exchanges_the_way/) to use a [DEX](https://decrypt.co/resources/what-is-decentralized-exchange-dex). > > - Still, I think a [seignorage](https://www.investopedia.com/terms/s/seigniorage.asp) system like [how Terra mints its decentralized stablecoin UST](https://research.thetie.io/the-terra-triforce-rise-of-the-lunatics/) is easier for folks to use and grasp - no need to [maintain a CDP](https://media.consensys.net/how-to-open-a-makerdao-cdp-and-earn-interest-on-compound-a-walkthrough-guide-b9e9f9584000), just burn LUNA to get UST. > > - Historically, DAI has fluctuated given market volatility and in the past the MakerDAO team have [debated different strategies to retain the $1 peg, including an 'emergency shutdown'](https://www.coindesk.com/tech/2020/03/12/defi-leader-makerdao-weighs-emergency-shutdown-following-eth-price-drop/). > > - The stability and collateralization of DAI is thus a function of MKR governance, which in my opinion has a lot of room for improvement: > > - There's a [lack of transparency](https://twitter.com/udiWertheimer/status/1197153771564019718) and a lack of participation, leading to [whales dictating monetary policy](https://twitter.com/0xMako/status/1188824097918029825?s=21). To take a more recent example, a [proposal to remove USDT collateral passed with only 10 unique voters, one of which had 73% of the voting power](https://vote.makerdao.com/polling/QmRNwrTy?network=mainnet#vote-breakdown). > > - To me this is not the ideal of decentralized governance, but more akin to the Federal Reserve setting monetary policy. ***** Would you like to learn more? [Click here](/r/CointestOfficial/comments/qk4ynk/coin_inquiries_round_dai_conarguments_november/) to be taken to the original topic-thread or you can scan through the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DAI) to find arguments on this topic in other rounds. Since this is a con-argument, what could be a better time to promote the Skeptics Discussion thread? You can find the latest thread [here](/r/CryptoCurrency/comments/ttir1a/monthly_skeptics_discussion_april_2022/).

r/CryptoCurrencySee Comment

Bro. I broke even on my eth thinking it would dump more. I got impatient and bought MKR and Ada. It dumped lower than 3k and now I’m kicking myself in the ass. I’m too impatient for this shit! But I’m not selling anytime soon

Mentions:#MKR
r/CryptoCurrencySee Comment

Using the stablecoin for governance is in it self a unbelievable oversight. There is a reason DAI uses a separate MKR token for governance.

Mentions:#DAI#MKR