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RE: DeFi On Steem: It Makes Sense

in SteemLeo4 years ago

Hi @taskmaster4450

I agree with this point 100%
I think free transactions is a huge advantage Steem has over Ethereum and I think the fast transactions is also huge. This last week when Ether fell 50% in value many loans saw there collateralization ratios fall to the liquidation number of 1.5. Part of this was caused because the loan holders could deposit more Ethereum in the MakerDao fast enough to stop the liquidations, so the speed of transactions when transaction volume on Ethereum is high has become a financial liability. We use so little of our transaction capacity here that we could accommodate that volume. Which is another advantage we have on the Steem blockchain.

I have a question for you:
The MakerDao prints Dai to give to loan takers, which they in turn sell on the exchange for dollars, which creates downward pressure on the price of Dai. Why doesn’t the MakerDao go into the Msrket to buy Dai, thus adding upward pressure on the price instead of downward pressure by printing Dai a traditionally inflationary practice. ??

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