The updated whitepaper which accurately reflects the system as it will be launched on Dec. 17 is now out! https://medium.com/@MakerDAO/introducing-the-new-whitepaper-for-the-dai-stablecoin-system-e7c6caabcfc4 …
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Replying to @MakerDAO
I don't believe that non-fiat backed stable coins can ever work. Eventually there will be a shock where everyone wants to redeem their stablecoin for cash. Then the peg breaks and the game ends. It won't matter how fancy the white paper or the collateralization process...
4 replies 0 retweets 3 likes
Replying to @_JohnWhelan
Hi John, The system is always overcollateralized. The stability mechanism has a cascading function of resiliency - with the first stop being the Target rate feedback mechanism and the second being global settlement. After GS the Dai user gets collateral = 1 USD back.
7:26 AM - 10 Dec 2017
0 replies
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