The system is meant to be governed in part by a governance token called MKR that allows holders to both make decisions about the system as well as act as a lever to stabilize the DAI price.
Conversely, if MKR token holders govern the system badly so that CDPs do not have enough collateral, new MKR tokens are automatically created and sold, bringing the system back to sustainable levels, but also effectively decreasing the price of MKR.
DAI’s remarkable resilience is due to the system of collateral and lending at the heart of the system.
#DAISupply
MKR
mkr.tools/tokens/dai
Collateralized Debt Positions (CDPs)
Loans are created and new DAI issued through what are known as Collateralized Debt Positions or CDPs.
blokt.com/guides/ethereum-guides/ethereum-lending
Conversely, if MKR token holders govern the system badly so that CDPs do not have enough collateral, new MKR tokens are automatically created and sold, bringing the system back to sustainable levels, but also effectively decreasing the price of MKR.
DAI’s remarkable resilience is due to the system of collateral and lending at the heart of the system.
#DAISupply
MKR mkr.tools/tokens/dai
Collateralized Debt Positions (CDPs)
Loans are created and new DAI issued through what are known as Collateralized Debt Positions or CDPs.
blokt.com/guides/ethereum-guides/ethereum-lending
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.