Let's talk a little about #MAKERDAO and #MKR token.
Did you know that this protocol works exactly like #Terra #Luna?
Abstract from WhitePaper
"If the Collateral Auction does not raise enough Dai to cover the Vault’s outstanding obligation, the deficit is converted into Protocol debt. Protocol debt is covered by the Dai in the Maker Buffer. If there is not enough Dai in the Buffer, the Protocol triggers a Debt Auction. During a Debt Auction, MKR is minted by the system (increasing the amount of MKR in circulation), and then sold to bidders for Dai."
Now it's funny to see that it's exposed totally to stETH and wETH. And you know what? Where is your Staked
ETHUSD
? Actually, the majority is on Lido, and Lido has a plan: blow another one exactly as happened with Terra / Luna.
Has anyone ever seen a proof of reserve for all the Ethereum that has been staked on Lido, Aave, or MakerDao?
LIDO STAKING
TOTAL VALUE LOCKED ON MAKER
Can you see? MakerDAO started losing total locked value slowly, but Lido keeps it up 'till the end.
And now it's happening again...
Funny Fact... MKR token pumped hard 3 days after the big crash. And it didn't lose too much value during the crash.
And now this...
So, beware. Someone is going to trigger MakerDao. When triggered, the protocol will enter a messy algo MKR issue to keep the DAI collateral and... you know. Terra Luna was fun...
If timed right, MKR could be your next Lambo.
ENJOYED?
Feel free to share this idea on Twitter.
Disclaimer: This information is not financial advice. It is for informational purposes only. Trading and investing involve risks, and individuals should conduct thorough research and seek advice from a qualified financial professional before making any financial decisions. The use of hashtags for indices does not imply endorsement or recommendation. Always exercise caution and use your best judgment when dealing with the financial markets.
Did you know that this protocol works exactly like #Terra #Luna?
Abstract from WhitePaper
"If the Collateral Auction does not raise enough Dai to cover the Vault’s outstanding obligation, the deficit is converted into Protocol debt. Protocol debt is covered by the Dai in the Maker Buffer. If there is not enough Dai in the Buffer, the Protocol triggers a Debt Auction. During a Debt Auction, MKR is minted by the system (increasing the amount of MKR in circulation), and then sold to bidders for Dai."
Now it's funny to see that it's exposed totally to stETH and wETH. And you know what? Where is your Staked
ETHUSD
? Actually, the majority is on Lido, and Lido has a plan: blow another one exactly as happened with Terra / Luna. Has anyone ever seen a proof of reserve for all the Ethereum that has been staked on Lido, Aave, or MakerDao?
LIDO STAKING
TOTAL VALUE LOCKED ON MAKER
Can you see? MakerDAO started losing total locked value slowly, but Lido keeps it up 'till the end.
And now it's happening again...
And now this...
So, beware. Someone is going to trigger MakerDao. When triggered, the protocol will enter a messy algo MKR issue to keep the DAI collateral and... you know. Terra Luna was fun...
If timed right, MKR could be your next Lambo.
ENJOYED?
Feel free to share this idea on Twitter.
Disclaimer: This information is not financial advice. It is for informational purposes only. Trading and investing involve risks, and individuals should conduct thorough research and seek advice from a qualified financial professional before making any financial decisions. The use of hashtags for indices does not imply endorsement or recommendation. Always exercise caution and use your best judgment when dealing with the financial markets.