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/biz/ - Business & Finance

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49591922 No.49591922 [Reply] [Original]

Currently Celsius holds 18.000 BTC and 278 millions $ of DAI debt that is about to get liquidated by the maker protocol when bitcoin hits 22.584$ because of the leverage.

This will cause another mass selling and devaluation which in turn will bring the collateral of DAI to be worth less than the outstanding DAI value.

When that happens people will sell DAI to avoid being be left empty handed like with UST forcing DAI's algorithms to liquidate more and further devalue the collateral basket of cryptos that back DAI.

A depegged DAI can't be easily fixed and it will likely spell the end for DAI.


I want to know how to short DAI as this might happen today or tomorrow. If you have some suggestions please let me know.

>> No.49591961
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49591961

>muh DeFi stablecoin
>muh MAKER

fucking kek hahahahaha

>> No.49592289
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49592289

It's coming...

>> No.49592307

take out a loan in dai using whatever collateral
buy usdc with your dai
wait for dai to crash
buy back the amount of dai needed to repay the loan using a mere fraction of your usdc

would this work?

>> No.49592458

>>49592307
wait nevermind as the value of dai drops the loan will pay itself off automatically. i don't do defi so i dunno i'm asking if this makes sense.

>> No.49592558

>>49591922
the liquidation is what prevents DAI from depegging

>> No.49592729

>>49592558
What's the current marked to market value of the DAI collateral?

When it goes underwater and there are no takers for DAI yield farming it's all over.

>> No.49592853

>>49592729
I’ll do it. I’ll buy everyone’s debt.
I’ll save crypto.
Just tell me how.
For my village.

>> No.49592887

https://daistats.com/#/
still 130% collat. ratio, half of it is USDC

>> No.49592961

>>49592289
This will be the mother of all catapults!!

>> No.49593080

>>49591922
Do we just go cash gang until defi shit all blows up and finishes dumping?

>> No.49593484

>>49592887
Consider the other USDC linked assets, almost 75% of it is USDC and savings rate is 0.1% ... what's the fucking point of this thing?

>> No.49593555

>>49591922
it could be worse
tether looks like its encountering price stability difficulties

>> No.49593615
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49593615

>>49592853
doing the needful I think you kind sir

>> No.49593624

>>49593484
Oops, I was looking at the wrong side ... that's the generated side, not the current collateral.

>> No.49593767

>>49593484

No it's not.

Look at the collateral chart.

Big amounts of the collateral is in eth and BTC and some other coins.

USDC in it's various forms is less than 40%

Selling pressure, Celsius wipe and underlying asset devaluation can easily depeg DAI

>> No.49593861

>>49593767
Well Binance lets you borrow Dai I see, so take a gamble.

>> No.49593895
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49593895

DAI is really at high risk, only USDC seems really safe, after all can't depeg when you hold actual $

>> No.49593949

>>49593861

Would that work as a short? Not so familiar with binance.

>> No.49594668

>>49593949
It might be possible on other exchanges too, dunno. Do your own research how to bankrupt yourself :)

Borrowing is the essence of shorting, you borrow what you short and buy something else. Then when the price goes down, you reverse the trade and return the loan with interest.

Of course there's collateral involved too, so you'd preferably want to do it on whatever exchange you already have a major account with (and pray they don't go bankrupt before you can cash out).

>> No.49595004

>>49594668

The question is if i need to return the coin i borrowed or the equivalent amount in USD.

>> No.49595086
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49595086

>>49592458
bump, but sounds like trying to buy ust at 90 cents hoping it goes back to a dollar, but i very likely am mis understanding what this anon is saying

>> No.49595512
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49595512

USDD depegging too...

Are we about to see a massive clusterfuck for DAI?

>> No.49595699

>>49595004
Yea, answering this is everything. But if its a USD equivalent liability, wouldn’t they prioritize a more liquid stable like usdt?

>> No.49595709

>>49595086

To short you need to borrow a coin, sell it immediately, wait for it to drop in value, buy it back at the lower value to give it back and keep the difference.

If you can borrow 100.000 DAI = 100.000$ than if it goes the way of the UST than you need to return 100.000 DAI = 10$ so you made 99.990$ profit.

The issue is the loan mist be for that coin not for the USDC/USDT equivalent.

>> No.49597351

SO WHAT IS THE BEST WAY TO SHORT A CRYPTO CURRENCY GUYS?

>> No.49597610
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49597610

>>49597351

This

>> No.49598626

should have used RAI guys. https://www.youtube.com/watch?v=kDCqiZd4xkI

>> No.49598850

> DAI depeg
> Over 50% of DAI is just USDC and the rest is ETH at prices from forever
Don't think so.
Luna was backed by a literal shitcoin, it's a different case.