1 Level
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58 Karma
Review on Maker by Vo Thu
Finally, Maker previously planned to include an additional stabilization…
Finally, Maker previously planned to include an additional stabilization mechanism in the mature version of Dai, the Target Rate Feedback Mechanism, which they recently decided to cut out. This is fortunate from our perspective, as we believe it was poorly designed from a process control perspective. Although the previous inclusion shows some bad judgment on their part, the removal exemplifies an ability to correct their errors and iteratively improve.
Pros
- Dai lacks strong price stabilization mechanisms and will have a hard time keeping the price tightly pegged in the mid run. Still, it will likely stay relatively stable. However, Dai will likely put stablecoin users at little risk. Dai is more resilient to crypto crashes than it seems.
Cons
- Dai’s supply will likely be limited, and Dai will not be able to meet a potentially very large demand for stablecoins. We believe Dai will be unable to scale to become a global stable currency.
