/biz/ - Business & Finance

DAI. I don't understand why Tether still exists at this point. DAI is a legitimate decentralised currency with a genius premise. Tether is a shady centralised version.

>>9245510
This.

Dai handled a 70% crash in its collateral value (ETH), and the worst that happened was a one day drop to 86 cents, related to lack of volume rather than system failure and instantly recovered to its dollar peg. It's pretty much the safest bet there is unless we suffer a crypto crash of an even bigger magnitude. Any situation in which Dai fails involves Tether blowing up long before that.

I would only use dai if my tokens were on the same dex. Otherwise I would just use tether or that other one on trex. I believe tether have the $.

>>9245510
>>9245567
>>9245583

Can DAI theoretically go to 0?

where is the volume for DAI

>>9245475
DAI is honestly your safest bet. I just wish its volume wasn't so condensed on a few select exchanges.

Binance listing when?

>>9245510
>>9245567
>>9245583
>>9245832

Can anyone explain what happens if I default on my CDP?

Like how does these Maker's determine risky loans, and what happens when they liquidate them?

>>9245688
If DAI dips below $1, it will be scooped up by CDP holders to pay off their debts and retrieve the collateral. Sub-$1 DAI means a discount to them. It’s free money. If the collateral becomes worthless, and no one wants to retrieve it, then yes-DAI will be worthless. But that’s a crypto Armageddon scenario.

>>9245998

So can you break this down to me, brainlet here.

Let's say I have 100 NANO.
I want to sell it for DAI, I get some DAI by putting my NANO up as collateral.

Let's say some fucked up shit happens, and now DAI price drops down. My CDP gets liquidated. Now what? I get my NANO back? Well I don't want that because I'm trying to avoid getting JUST'd in a bear market...

Maybe if you don't borrow using margin this problem is solved?

>>9246068
First off, for right now, the only collateral you can put up is ETH. You can borrow basically 66% of the value of the ETH. If/when they take NANO, that might be 33% who knows. But you can way overcollateralize, so that you don’t get liquidated unless for example ETH goes to $75.

If you get liquidated, you will only lose as much collateral as necessary to pay principal and interest, plus 13%. So really, the risk is losing 13%, because you’d keep the DAI (or whatever you bought with it).

As for margins, think carefully and much longer term. Draw DAI when ETH is high, then if it crashes, use the DAI to buy more ETH, add to your collateral and lower your liquidation price.

When the price of DAI fluctuates, act accordingly. Buy sub-$1 DAI to cancel your debts at a discount and sell DAI when it’s over a buck to borrow more money than you’ll have to pay back

>>9246068
Btw the fluctuating price of DAI won’t affect the liquidation price. The debt principal is denominated in DAI and the system assumes $1=1 DAI. (Could be € or ¥ or SDR in the future) The interest debt is denominated in MKR, and the system gets the market price from feeds.

>>9246327

Interesting thank you for the insight.
If I put in my ETH and just request an amount equivalent and choose not to borrow anything, then I should never get liquidated?

I'll have to look into how fees for principal and interest are calculated. I just saw Request Network' partnered with DAI.

>>9246533

to clarify,

an amount of DAI equivalent to the ETH. $1000 worth of ETH receive 1000 DAI (let's say at $1), can't get liquidated?

>>9246545
No. To borrow 1000 DAI, there must be at least $1500 worth of ETH in the CDP. If the value of the ETH became $1499, you get liquidated. They’d take a 13% penalty, so you’d be left with:

* $369 worth of ETH (minus whatever interest was owed)
* 1000 DAI

Why don't you guys just use a fiat pair on coinbase? What's the disadvantage of that?

>>9246859
that should be fairly obvious

>>9246767

Fuck I wish Tether was legit.

I just don't like how with DAI you might get liquidated at any second, will likely happen to lots of people during a crash as the coins they put up become worth less and less.

I mean the platform is ingenious etc. but fuck

>>9246859
If you borrow DAI, you keep your ETH, and you can use the DAI to pay off your normie debts TODAY, and pay it back with a trivial amount of ETH once we get to the moon.

Tether is insufficiently transparent to be trustworthy, maybe it’s fine but only God knows. Fiat as a trading pair is fine, but you lose the benefits that come with crypto.

>>9247058

would putting money into fiat as a "trading pair" be considered realized gains, or cashing out, per capital gains tax law?

>>9247006
It’s not without risks, but the system came out of the recent Pinkening totally unscathed.

>>9247085
Yeah, but technically so would tether. The tax implications of using Maker are unclear.

>>9245510
nice pajeet, pajeet, keep memeing

>>9247085
For capital gains, trading against tether, DAI, or USD are not distinguishable. There is a possibility that pre-2018 trades against other cryptos might not be taxable, but starting this year and going forward that is most certainly not the case.

>>9247159
Is this nigga for real? Are you actually a Tether shill?

>>9247006
Then just buy the DAI from exchanges. You don't have to run a CDP yourself. Zero risk (unless ETH tanks to like $100, in which case we have bigger problems).

>>9245475
DAI is an option and it's not backed by actual dollars. If it ever gets big enough to represent a significant percentage of eth's market cap it's going to collapse after a price crash, because eth from cdp liquidations is going to be dumped on the market, creating a cdp flash crash.

Tether is redeemable and independent of crypto prices.
Tether has bad pr because of tether fud, organized by unknown parties for their own reasons. Nothing came up from it, it all turned out to be BS, but if you repeat a lie often enough people start believing it.

>>9247291

Interesting, actually you make a fucking smart point

>>9247217

Is this true in Canada, I think I have to cash out for it to register? If this is true then fuck it I'll just legit cash out

>Taxes

Pay what you that can be tracked. But moving forward, buy crypto locally through kijiji or craiglist in person and use unverified accounts on exchanges.

I will never cash out and i'm certainly not paying my tribute to Israel.

>>9247624
Not sure about Cuckistan, I’m down in El Burgerlando

>>9245475