Review on Maker by monte odes
Maker is a very difficult project to understand all the ins and outs that is…
Maker is a very difficult project to understand all the ins and outs that is involved with the coin. So to start off i should start by saying what the product of maker is. The product of Maker is DAI. This is a stable coin. Stable coins are coins in the crypto space that allow the price to be pegged to a certain amount. Some other stable coins that you might know of or even use are tether, true usd, and many others that will not be brought up here. DAI would be used as something to trade in and out of when the market is fluctuating in such large spreads as seen in this past year. It allows the user to have as safe place to trade his money into while the market tanks. And when that trader feels its time to go back into the market the use DAI to trade back into btc. Unlike other stable coins like tether or tusd, Dai is a token that proposes another way, one that takes some ideas from the principle behind crypto-backed p2p loans - a fiat value is backed by a crypto asset. Because DAI is run on ethereum it is then backed by ethereum as well. DAI may seem like the lesser option because of the wide use of tether and tusd. However Tether is no audited which leaves many users of that product fearful. Why would they be fearful you say? The fear is that they do not have enough money to back up the tether that they have minted. This would lead to an incredible collapse of tether price. mostly likely leading to a great collapse in price for bitcoin as well. That is crazy you say, well yes it is. Why would anyone use tether knowing that there is a possibilty that it is not one hundred percent legitament and backed up. Well the reason would be liquidity. Tether offers the useres and traders in the crypto space an option to go in and out of their altcoins or maybe jsut bitcoin if they are a maximalist with great ease. These traders often need to their orders to be filled quickly, and tether gives the users and traders that option. Dai on the other hand although much more reliable in the fact that it is backed up and legit does not offer what is most important. Liquidity is the key to success. If there is not enough to fill you orders then what use is DAI. Maker although they do have a great idea and it is very capable of what they want it to do. It lacks the liquidity needed to implement it in a usable fashion. Just like many crypto platforms fear they will not be able to scale with the need that comes with mass adoption. DAI is in a similar situation in that they cant scale with they mass's needed in adoption. Yes the tech is there and scale able, but they dont have enough users. The main and only and biggest con is that they need more users. they need to find a way to drive more people to use their stable coin in order for it to succeed.
Pros
- stable coins are needed in the space
Cons
- Not a lot of liquidity.
