Uh, guys?

[Anonymous No.13379981]

What the fuck is this? Is Maker imploding? Who's going to want to open a CDP if it costs this much to close it? I feel like it's reaching a tipping point and people will not open new CDPs while closing existing ones before the fee hits something even more retarded. This really doesn't look like much of a stablecoin to me anymore

[Anonymous No.13380014]

>>13379981
I don’t get it

[Anonymous No.13380033]

>>13379981
That's what happens when nobody uses it

[Anonymous No.13380040]

>>13379981
The point is to make CDPs buyback DAI and increase the price of DAI back to exactly 1$. At which point the stability fee will likely be voted lower until equilibrium is found.

[Anonymous No.13380045]

>>13380014
Stability fee has been raised like 3-4 times this year. It was definitely at like 3% a few months ago. Dai still has not returned to parity with the dollar. Positive feedback loop initiated.

[Anonymous No.13380048]

>>13380040
It's clearly not working. This incentive mechanism is fucked.

[Anonymous No.13380054]

CDPs are not the product. DAI is the product. They are raising the rent on your ass to get you to buy DAI and close your CDP. DAI is currently 96 cents. It should be 1 dollar.

The stability fee (interest rate) will likely need to go above 25% because degenerate gamblers are still not closing their CDPs at the current rate.
>t. DAI holder and not a degenerate gambler

[Anonymous No.13380072]

>>13380054
Degenerate gamblers are the ones emitting DAI into the crypto market to begin with. No one is going to want to use this CDP platform and DAI is going straight to zero.

[Anonymous No.13380096]

>>13380072
If nobody wants to use Maker then why aren't people repaying their CDP debts? Because they don't mind paying interest out the ass. Maker will gradually raise the rate until the equilibrium is reached.

[Anonymous No.13380098]

>>13380048
Atm DAI isn't really used for anything but paying stability fees but new uses are coming online rapidly (Augur DAI betting for example) that will help drive demand.

[Anonymous No.13380109]

Look, I really don't understand the economics of Maker enough to be making any predictions. This just looks fucked though. What's the point of a collateralized debt position if you have to pay higher rates than a traditional loan?

[Anonymous No.13380122]

>>13380098
Yeah, some other coool projects are implementing DAI like Althea Mesh, Flyingcarpet, etc. I do want to see this succeed. Just looks sketchy that's all.

[Anonymous No.13380150]

i still don't get the stability fee. i thought the whole point of maker and dai was to lend money and people that staked got interest

[Anonymous No.13380165]

>>13380150
Heres my understanding- stability fee is paid in MKR and burned, lowering supply of MKR. So your MKR goes up in value but you don't see any realized gains until you sell it

[Anonymous No.13380169]

>>13380109
Maker lets you take out a loan from yourself. You can speculate with the loan and with the collateral at the same time. It's not a regular loan.
>i still don't get the stability fee. i thought the whole point of maker and dai was to lend money and people that staked got interest
the point of maker is to make sure that DAI is 1 dollar. The people who stake do not earn interest, they pay it. Maker can raise and lower the interest rate to make sure DAI is stable. Right now DAI is under 1 dollar so the rate should go up. In the future some of this interest will go to DAI holders who lock up their DAI in a savings account. This creates another stability mechanism for maker to influence the demand for DAI.

[Anonymous No.13380171]

>>13379981
Maker doesn't understand liquidity or the traps therein

[Anonymous No.13380461]

>>13380171
Some people think cucumbers taste better pickled.

[Anonymous No.13380520]

>>13379981
>Who's going to want to open a CDP if it costs this much to close it
No one. That's the point. There is too many cdps being open so too much dai is being created. They have to essentially make it unappealing to create more dai until it balances out.

[Anonymous No.13380719]

Reminder that about 2 million eth are bound up in CDPs. Maker DAO are on the record saying that if their experiment fails or if they get complacent, the entire eth ecosystem will be flung into turmoil.

Another reminder that less than 6 months ago the 'stability fee' (which is an interest rate) was about 3% when dai was about 97c. Maker then recently increased the rate to 7.5% in one hit to try to reach DAI dollar parity, causing DAI>$1. Now the rate is 14% and its below a dollar again.....

So clearly the dollar peg mechanism is being strained hard. Im super into MKR as a concept but i fear their experiment will be ill fated.

[Anonymous No.13380729]

>>13380171
traps aren't gay

[Anonymous No.13380767]

>>13379981
maker is a single centralized API sending prices info to the blockchain every minute. It's a centralized scam that would take like 5 minute to code. No idea why retards invest in this shit, it's gonna inevitably get hacked.

[Anonymous No.13381044]

>>13380767
Extremely bearish for eth if true.

[Anonymous No.13381287]

>>13381044
it is true, there's no way to send send price data to ethereum other than sending it every minute from a centralized server.

[Anonymous No.13381422]

>>13381287
I thought they paid oracles for this?

[Anonymous No.13381444]

If maker goes, eth dumps to double digits.

Looks like it's not a matter of when, not if. God damn these idiots and their retarded little experiment.

[Anonymous [O1G] No.13382003]

>>13380054
its all because btc made people nervous holding dai and many try to cash out not to miss the bulltrap/bullrun so they dont give a fuck about incentives just want out without much loss

[Anonymous [O1G] No.13382013]

>>13381422
oracles are servers running datafeed api

[Anonymous No.13382019]

>>13379981

This is why i hold SDS. Cheaper rates.

[Anonymous No.13382044]

>>13381444
no one cares about this shitcoin, ETH won't move

[Anonymous No.13382153]

>>13379981
THAT'S THE FUCKING IDEA!
DAI is 98 cents. And the most important thing is to keep it pegged to $1. That means there's too much DAI on the market. So they're raising interest rates. Just like the fed does when inflation shows it's face.
Don't like it? STIFF.

[Anonymous No.13382163]

>>13381444
How losing 2 millions locked eth and basicly decreasing suply makes eth crash you mongo

[Anonymous No.13382268]

The system wasn't launched to give people cheap credit to long ETH. It's working fine, if you want to change it, just buy 50,000 MKR and vote like the rest of us, pleb.