Behind The Scenes
Day in Day out we are using lots of tools on DeFi word and some times getting to know how a system works is interesting. Today we are going to get deep down the rabbit hole and find out more about system behind Makerdao stabelcoin, DAI. Makerdao tried to keep the system (DAI) decentralized. but how?to do so they need crypto asset for collateralization rather than fiats and at first they introduced SCD (Single-Collateral Dai) which only ETH was excepted as a collateral. but the problem with et...
Behind The Scenes
Day in Day out we are using lots of tools on DeFi word and some times getting to know how a system works is interesting. Today we are going to get deep down the rabbit hole and find out more about system behind Makerdao stabelcoin, DAI. Makerdao tried to keep the system (DAI) decentralized. but how?to do so they need crypto asset for collateralization rather than fiats and at first they introduced SCD (Single-Collateral Dai) which only ETH was excepted as a collateral. but the problem with et...
How DAI System Works
Makerdao tried to keep the system (DAI) decentralized. but how? to do so they need crypto asset for collateralization rather than fiats and at first they introduced SCD (Single-Collateral Dai) which only ETH was excepted as a collateral. but the problem with eth is price volatility which makes it hard to keep 1:1 ratio for DAI. to solve this problem , Makerdao came up with Over - collateralization solution with the ratio of 1:1.5. it means if you wanna mint 100 $ DAI by the system you have to...
How DAI System Works
Makerdao tried to keep the system (DAI) decentralized. but how? to do so they need crypto asset for collateralization rather than fiats and at first they introduced SCD (Single-Collateral Dai) which only ETH was excepted as a collateral. but the problem with eth is price volatility which makes it hard to keep 1:1 ratio for DAI. to solve this problem , Makerdao came up with Over - collateralization solution with the ratio of 1:1.5. it means if you wanna mint 100 $ DAI by the system you have to...
