MKR Dao published Purple Paper !

joshbreslauer (60)in #makerdao • 7 years ago (edited)

The Dai credit system - stable currency technology !

Abstract:

We propose a new cryptocurrency called Dai that automatically reacts to emergent market conditions in order to stabilize its value against the major world currencies. Dai is created by the Dai Credit System, a decentralized platform that runs on the Ethereum blockchain. The Dai Credit System ensures that Dai is always backed in excess by a collateral portfolio of other Ethereum-based digital assets. An autonomous feedback mechanism continuously modifies the incentives for borrowing and holding Dai, with the goal of continuously matching supply to demand. The risk of the collateral portfolio is managed by holders of a separate digital asset called Maker (MKR) and as such, the value of MKR is directly tied to the success of the Dai Credit System. This means that MKR holders have a financial incentive to act as responsible regulators of the solvency of the Dai Credit System and ultimately the price stability of Dai itself.

Introduction

https://github.com/makerdao/docs/blob/master/Dai.md

The blockchain revolution has long been touted as the key to many seemingly intractable global problems, from mundane topics like international remittances to lofty ambitions like global financial inclusion. However, the process of mainstream adoption has been slow due to one harsh reality: price volatility of decentralized digital assets....