You are viewing a single comment's thread from:
RE: Tether Still Bleeding (Summer 2019 Bulls?)
I'd like to point out that this has never, and will never, happen to Dai.
On average, Dai is very volatile compared to other stable-coins. However, this is simply because not a lot of people are using it yet. It only appears on decentralized exchanges which gives it very low liquidity.
If Dai were introduced to a platform like Coinbase where you could trade Dai directly for $1 USD, it would never lose its peg.
Anyone in the world can create/burn Dai coins using the MakerDAO platform. Dai coins are overcollateralized by a minimum of 150% worth of Ethereum. With Dai anyone in the world can take out a loan using a smart-contract and only pay 0.5% APR interest rates. Central banks cannot compete.