/biz/ - Business & Finance

>>8657352
pic related, see
https://medium.com/cryptolinks/maker-for-dummies-a-plain-english-explanation-of-the-dai-stablecoin-e4481d79b90

cliffs:
collateral held in smart contract plus safety margin

if collateral value falls, liquidation starts, before collateral is below tokenized asset face value

in black swan event, inflation happens on a diff token outside the ecosystem to cover shortfall, punishing ecosystem stakeholders.

in case of soros attack, community can trigger global settlement event, freezing everything and buying back the stablecoin.