@MakerDAO - doesn't the $mkr - $dai system add volatility to everything that is used as collateral? i.e. everything that is NOT $dai? basically leveraging the rest of the crypto market and making it even more risky? #cryptocurrency #blockchain #Ethereum #stablecoin
Ultimately we aren't adding leverage, we're merely decentralizing and reducing the counterparty risk associated with it.
-
-
very much appreciate the response. first off, for now you can only use ETH for the CDP anyway, correct? secondly, what happens if the market crashes quickly, liquidations will be triggered which will have a compounding effect and work just like leverage... am i wrong?
-
1 - yes until this summer. 2 - correct - CDP's are decentralized leverage mechanisms. For better (and faster) answers - pls head over to http://chat.makerdao.com
- 1 more reply
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.