- Sam MacPherson of MakerDAO, the creators of the decentralised stablecoin DAI, joins the podcast
- Sam and host Dan Ashmore focus on the way forward for the DAI stablecoin following the relations that BUSD will shut down amid the SEC clampdown within the US
- The duo chat collateral, capital effectivity, centralisation, Tether, USDC, criticisms of DAI, the way forward for the stablecoin and extra
The world of stablecoins has been thrown right into a tumble dryer the previous week or two.
Final week brough the bombshell announcement that BUSD shall be griding to a halt following a clampdown by the SEC on its New York-based issuer, Paxos (deep dive on the complete story and what it means right here).
This has sparked renewed concern round centralised stables and it looks like an ideal time to test in with the decentralised stablecoin chief, DAI. So I chatted with Sam MacPherson who works in protocol engineering at MakerDAO, the creators of the DAI stablecoin.
Sam and I chatted concerning the current storm engulfing BUSD, in addition to potential implications for different US cash, equivalent to USDC, going ahead. We mentioned the implications for the decentralised world, and whether or not this impacts the good centralied vs decentralised debate.
We additionally talked Tether, which has risen above a 50% market share for the primary time since November 2021. What are the implications of this? In fact, it’s exhausting to speak about Tether and never contact on the tenuous reserve state of affairs both, maybe probably the most over-covered (but additionally among the many most vital) subjects in crypto historical past.
DAI has been criticised for the need to overcollaterise, a trade-off that’s required to be made given the intense volatility that crypto presents, which is what DAI is collaterised by. I requested Sam about this criticism and whether or not it may ever change going ahead.
We additionally chatted about decentralisation itself. DAI’s underlying collateral is comprised of centralised property, together with USDC. This may occasionally appear humorous for a “decentralised” asset, however typically real-world practicalities must prevail. We chat about what this all means and whether or not it is going to at all times be this manner.
Then there’s the case of yield, which is feasible given the quantity of DAI’s collateral parked in T-bills, that are instantly fairly profitable amid this excessive interest-rate surroundings. Sam discusses the potential for this yield to filter by way of to DAI holders.
Talking of DAI holders, they had been additionally mentioned at size. I needed to know why any person would select $100 of DAI over, say, $100 of a centralised stablecoin, when the previous might require $150 of collateral to be posted.
All in all, it was an extremely topical dialog given the chaos within the stablecoin market proper now. BUSD seems certain to vanish, whereas who is aware of what occurs USDC? DAI is at present fourth in market cap, and the runaway decentralised chief. When you care about stablecoins, you might discover this episode attention-grabbing.