Orthogonal to the circular notion that the price of SNX will be whatever is required for the system not to become undercollateralized.
Otherwise we would just collateralize DAI with MKR.
Fwiw I am fairly sure that agrees with this point and has said as much many times.
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Wait, isn’t the implied negative interest rate indicative of the fact that Maker doesn’t / can’t actually follow market rates, but instead is subject to wonky human governance?
Also, dominance of perps suggests they are the best way to get leverage
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No, it doesn’t. It implies that they prefer not breaking the peg and taking on that excess purchasing power volatility to implementing true negative interest rates.
See:
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Replying to @PhABCD @hasufl and 4 others
Not actually targeting the Market Price to the Target Price is equivalent to running a system deficit; not opining on that path but Lev explains why well here: forum.makerdao.com/t/mip20-target
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The humans are choosing one set of values over what the market would otherwise prescribe
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A few notes:
1) redeemabillity is HUGE. If I have 1 USDC, in 30m I can have $1. If I have 1 DAI, I have to hope someone will buy it.
2) this means DAI can blow out on moderate timescales. USDT takes a day-week to redeem and sometimes moves 5%; DAI is 10x worse.
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3) if the collateral can blow out that's scary; it threatens the safety of the assets. SNX collateral is terrifying compared to ETH collateral.
4) Perps are super liquid b/c they "expire" in ~1 day, so you don't have to worry about premiums persisting--funding makes you whole.