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Replying to

and

This is true of.. any synthetic exposure, ever? Anyways, in practice Maker _is_ the best way to get ETH leverage, as evidenced by the functional negative interest rate on DAI.

Replying to

and

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

Replying to

and

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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Charlie Noyes

@_charlienoyes

Aug 3, 2020

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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and

The humans are choosing one set of values over what the market would otherwise prescribe

Replying to

and

No, this is wrong.

Replying to

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.