This helped me move closer to a full understanding of Dai. Not there yet.


kleinbl00:

it's so fucking condescending tho

    If you’ve been scrutinizing the system for flaws, it probably didn’t take you long to find one. It’s the possibility of a dreaded “black swan event.”

Here's a plain english explanation of the Dai stablecoin: You give them your ether and they only pay out the dollar amount. They hold onto your ether until you pay them back the dollar amount. Meanwhile they arbitrage the difference.

It's literally this:

"Boy howdy - Joe says he'll take $15 but all I have is ether! By the time the money makes it to Joe it might be $15.50!"

"No problem, consumer! Give me your ether and I will give Joe $15, but only if he takes my shitcoin."

"...why don't I just go to a real exchange?"

"Because then I can't make money."

"...why can't I write my own smart contract that only dispenses what Joe is entitled to?"

"Because you're a moron. Here, let me demonstrate by putting a post on Medium."

"Gee, thanks, predatory coin scammer! I sure do appreciate you stabilizing the markets like a good old fashioned visionary and captain of industry!"

"No problem, knave. Now bend over."


posted by mk: 349 days ago