MakerDAO does this thing where they give DAI as loan in exchange for staking ETH and other tokens. Isn't that a similar pattern Luna's taking or was taking? Read somewhere that their goal was to kick MarkerDAO in the ass or something like that.
I don't entirely understand a lot about their promised APR and how that doesn't work out in their favour.
Does this mean that all this is a possible correction rather than an outright crash? Or just a little bit of both. I'm trying really hard to understand (in simple terms) why all this is happening but I don't get it.
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MakerDAO and DAI are a little different because ETH collateral gets liquidated at 150%.
DAI has a lot more buffer and uses multiple tokens to collateralize. DAI also has nuclear option cutoff switches and can print Maker to pay off bad debt. In comparison, UST was very basic and prone to attack.
Okay. That makes sense. DAI has a lot more backup than UST. I read recently that Travala started accepting Payments in UST, so how's that gonna work out?
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