Of all the stablecoins on Ethereum, the only one that isn’t backed by banked fiat is MakerDAO’s DAI. Instead, DAI is backed by ETH, and the peg to $1 is maintained by the governance of the MKR token holders. …
RT @ameensol: Interested in an alternative to @MakerDAO?
Announcing MetaCoin—The Governance-Minimized Decentralized Stablecoin!
Because money is too important to be left up to humans!
I don't like the idea of using Uniswap as de facto price oracle. For most of its history ETH is fluctuating in $100-$200 range, and displays strong mean reverting characteristics. But this may not be the case in future. When ETH will experience period of parabolic growth (10x? 20x) the "impermanent losses" will be unbearable to liquidity providers and liquidity could significantly drop, making it less reliable and prone to manipulation.
This would be really, really neat. I am a little worried about the viability of algorithmic control of the interest rate, particularly using a controller as primitive as a PID. Is there any evidence that such a control would be viable?
There are two separate concepts packed into TRFM that need to be proven, and it is worth disentangling them:
1) The automated PID target rate feedback, with a fixed target price (e.g. 1 USD)
2) The variable "target price" method of interest as opposed to DSR (think: chai. When it's baked into the price, it can go negative, which DSR cannot)
Then finally, 1 and 2 together at once, which was the original "dai bond" design
Yes, looking forward to this. Would only suggest to expand the oracles. But yeah hopefully this creates some healthy competition. I think there is appetite for ETH collateral only $-pegged stablecoin, too.