One important security feature of the Maker Protocol is called Emergency Shutdown. This crucial security feature allows the system to shut down and make underlying collateral available for redemption by Dai holders and Vault owners.
We will take a look at how professional arbitrageurs expand and contract the supply of a stablecoin based on the current demand of the market, how Dai’s model is different and why the lack of a professional arbitrage model makes Dai fundamentally unscalable.
control before they are coerced into KYC/AML
Dai is valuable because it derives its value from pledged collateral, and its supply is dynamic because it’s created and destroyed based on loans made relative to that collateral.
MakerDAO is Eating Up All the ETH!Okay, obviously not, but borrowers are increasingly pulling ether from other platforms and putting it as collateral on MakerDAO instead.
“Wow. The @MakerDAO stability fee (interest rate) has dropped to 5.5%. A single whale (with 97% of voting power) made the decision. Went from 2,489 votes a few hours ago, to 44,539 votes.”
