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by nbeleski 2743 days ago
Isn't most of DAI stability artificial through bots because it is just a cryptocurrency-collateralised derivative contract which uses ETH for the collateral?

It will eventually fail too. When ETH collapses they won't be able to hold the stability for long.
2 comments
babaeth 2743 days ago
What do you mean by ETH collapsing? You mean going to 0? ETH has lost more than 90% of its value in 2018 but DAI remained at $1 which seems pretty stable
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DennisP 2743 days ago
The only external input to Maker/DAI is a collection of ETH price feeds. The rest is an open market. I'm sure some market participants use bots, but that's true in every financial market these days.

I was skeptical of Maker at first, and they are backed by ETH, but they've stayed within 1% of their target price while ETH dropped 94%, so it seems to be working pretty well so far. They're working on a multi-collateral version.

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ac29 2743 days ago
>they've stayed within 1% of their target price

I'm not sure which charts you are following, but as recently as yesterday they were 5% off target: https://coinmarketcap.com/currencies/dai/#charts

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