A new governance-minimized alternative to MakerDAO is announced
Ameen Soleimani, creator of MolochDAO and Spankchain launched a specification for MetaCoin, a crypto-collateralized stablecoin designed to take away some perceived weaknesses in MakerDAO. It will make the most of an analogous two-token mannequin as Maker and Dai however will create some structural modifications to the system. For instance, ETH is the one out there collateral and quite than utilizing the Maker oracle system to decide liquidations, MetaCoin will create a token-curated registry of fiat-backed stablecoins and pull their volume-weighted common value. There may even be no human component of setting rates of interest, as a substitute, an algorithmic controller will change the charges such that 1 COIN = $1. The free-floating governance token, Meta, will likely be used to provoke an Emergency Shutdown and will likely be bought on the open market when curiosity is paid again on excellent loans. Meta be distributed between members of the MolochDAO and MetaCartel DAO in addition to a new group SweatDAO which is able to assign shares based mostly on new contributions.
Why it issues
The quantity of worth locked in DeFi just lately surpassed $1 billion. While this is a formidable feat, it reveals the quantity of danger inherent in a financial system that’s so depending on a single asset – Dai. Any of the 4 largest MKR holders may execute an assault to print limitless DAI and use that to steal the entire liquidity in Maker in addition to DEXs and lending swimming pools. By eradicating most of the ways in which people can work together with the system, MetaCoin ought to, in idea, be extra resilient to these kind of assaults.
While the put up explicitly states MetaCoin is not designed to be aggressive with Dai, it is going after a really related use case and can inevitably lead to some worth being extracted from the MakerDAO system by way of human and financial capital. This may nonetheless be a internet optimistic for all the ecosystem as it will probably present a safer alternative for these with completely different danger preferences.