Quote from: ulhaq on May 02, 2018, 05:43:06 PM

Came across this purported stablecoin Dai:
https://makerdao.com/whitepaper/DaiDec17WP.pdf

Only, like others, I do not see how it is sustainable or a good idea.

Ether (and other cryptocurrencies in the future) is locked into a smart contract and held as collateral. However, if the value of ether plummets, then there will not be enough collateral to cover the 1.00 USD price of Dai. They describe 2 other mechanisms to stabilize the price, but in a falling market, none of them will be sufficient.

The Bank of England learned in 1992, the hard way, that their peg could not be maintained. Why do these crypto companies think that they can achieve it?

Although you feel quite similar to other stablecoins, DAI is really making a difference. The first thing is that the transaction fee is very cheap and this is one of the things that users love when using DAI and trading it. Besides, it is being used to allocate money to bloggers in Steemit. it works great and it also has an ICO policy for the projects they support. Investors can pay back at any time and only need to pay a fee of about 16%. You can read it on the DAI main page.