B/c there's reasonably strong evidence that Tether is at least partially insolvent, i.e. that all those billions of USDT aren't actually backed by USD. At least with DAI the "buffering" mechanism you get from its fancy collateralization is clear; Tether's just a guessing game.
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Replying to @tensorjack @joeykrug
By "buffering" I mean: DAI won't be a rock-solid peg like an actually-backed USDT. It can be knocked away from $1 by sudden price movements. But its built-in incentives should mean that it bounces back to $1 pretty quickly. Think of it as an "asymptotically stable coin" ;p
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Replying to @tensorjack @joeykrug
Btw,
@MakerDAO please correct me if I'm misunderstanding how DAI is supposed to work! It's quite complicated, but the above is the gist of it... I think
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Replying to @tensorjack @joeykrug
Yes, once the TRFM is initiated that's how it will work =) Right now, its primarily the threat of global settlement (and the market forces therein) that keeps it at $1
8:57 AM - 2 Feb 2018
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