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Title: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: yat97 on July 15, 2021, 05:00:14 PM Sell off of DAI?
So like lets say bunch of people buy in mass sell their bitcoin for like 60,000 USD in DAI, bitcoin drops to 30k. Everyone still has 60k of DAI, but if bitcoin is only worth 30k then how can they cover if everyone sells their DAI for us dollars? ??? Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: jrrsparkles on July 15, 2021, 05:16:44 PM Wait, DAI is not actually backed up by cryptocurrency. It is running on ethereum blockchain via smart contracts but the actual value of DAI is from secured collateral loans which can be a real estate property or gold or anything that has equal value to the debt.
Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: noorman0 on July 15, 2021, 05:21:04 PM People who bought DAI with US dollars.. ::)
If bitcoins drops from 60k to 30k because of the mass sale you mean, then each one will have a varying amount, no longer exactly 60k because they sell their BTC at different prices. You don't have to worry that BTC can't cover just 60k DAI. BTC has a limited supply, but the law of supply and demand still applies. And BTC pairs are not just DAI. Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: MusaMohamed on July 15, 2021, 05:24:22 PM DAI is a decentralized stable coin. Liquidity of DAI is smaller than Tether USD but if you want a decentralized stable coin, it is your choice. Tether USD (USDT) is centralized.
Top 10 stable coins of 2020 (https://bitcasino.io/blog/cryptocurrency/top-10-stablecoins) Quote 5. Multi-Collateral Dai (DAI) With over $100 million Dai circulating in the market, the stablecoin has already attained a steady growth of 27% per month, stemming from active partners transacting remittances and payments to different websites and applications in turn accepting the coin. It was launched in 2017 under the creation of MakerDao, and similar to others, it also allows USD as a reserve asset in exchange for stablecoins or Dai. Recently, the stablecoin has expanded by launching the Dai Savings Rate, allowing users to earn just by using Dai. This innovation has been all over the crypto space, which entices more utilisation of Dai in future transactions. Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: yat97 on July 15, 2021, 09:27:00 PM DAI is a decentralized stable coin. Liquidity of DAI is smaller than Tether USD but if you want a decentralized stable coin, it is your choice. Tether USD (USDT) is centralized. Top 10 stable coins of 2020 (https://bitcasino.io/blog/cryptocurrency/top-10-stablecoins) Quote 5. Multi-Collateral Dai (DAI) With over $100 million Dai circulating in the market, the stablecoin has already attained a steady growth of 27% per month, stemming from active partners transacting remittances and payments to different websites and applications in turn accepting the coin. It was launched in 2017 under the creation of MakerDao, and similar to others, it also allows USD as a reserve asset in exchange for stablecoins or Dai. Recently, the stablecoin has expanded by launching the Dai Savings Rate, allowing users to earn just by using Dai. This innovation has been all over the crypto space, which entices more utilisation of Dai in future transactions. If it's Decentralized does anyone audit their resources? Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: zasad@ on July 15, 2021, 10:07:59 PM Sell off of DAI? https://makerdao.com/en/whitepaper#the-dai-stablecoinSo like lets say bunch of people buy in mass sell their bitcoin for like 60,000 USD in DAI, bitcoin drops to 30k. Everyone still has 60k of DAI, but if bitcoin is only worth 30k then how can they cover if everyone sells their DAI for us dollars? ??? You have not figured out how DAI works. Read the documentation. To receive 100 DAI, you need to block other coins or tokens in a smart contract for $ 150 at the current exchange rate. When your collateral is worth $ 100, Maker will sell your collateral and burn the DAI received. Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: nira09 on July 15, 2021, 10:58:03 PM https://makerdao.com/en/whitepaper#the-dai-stablecoin Useful link, thanks for sharing. So there is no need to worry that the DAI token will lose its stability value, Because the reserved cryptocurrency assets are more than the circulating DAI value.You have not figured out how DAI works. Read the documentation. To receive 100 DAI, you need to block other coins or tokens in a smart contract for $ 150 at the current exchange rate. When your collateral is worth $ 100, Maker will sell your collateral and burn the DAI received. As long as the coins we have are stable, they are made by companies that have good fundamentals and are trusted, I don't think we need to worry. Title: Re: Since DAI is backed by cryptocurrencies what happens if there is a mass sell off Post by: zasad@ on July 16, 2021, 02:16:13 PM https://makerdao.com/en/whitepaper#the-dai-stablecoin Useful link, thanks for sharing. So there is no need to worry that the DAI token will lose its stability value, Because the reserved cryptocurrency assets are more than the circulating DAI value.You have not figured out how DAI works. Read the documentation. To receive 100 DAI, you need to block other coins or tokens in a smart contract for $ 150 at the current exchange rate. When your collateral is worth $ 100, Maker will sell your collateral and burn the DAI received. As long as the coins we have are stable, they are made by companies that have good fundamentals and are trusted, I don't think we need to worry. DeFe's system is very complex, and those who have not figured out how it works at the very beginning will always see the pitfalls. Maker DAO has passed many audits from well-known companies and has not yet been hacked. If someone is interested, then upon request in Google, you can get all the detailed information |