How a Stablecoin Survived a Crash, Bugs and Decentralization
The finest Sundays are for lengthy reads and deep conversations. Last week the Let’s Talk Bitcoin! Show gathered to debate how the MakerDAO DeFi stablecoin really works and what occurred throughout the sudden, precipitous drop in crypto costs earlier this month.
In the aftermath of the so-called “Black Thursday” crash from a number of weeks in the past, MakerDAO’s “DAI” ethereum backed greenback pegged stablecoin got here untethered and was, for a time no less than, functionally bancrupt. In the aftermath, holders of the MKR token which permits holders to take part in governance selections opted to do a couple of issues, together with including the centralized stablecoin USDC to the checklist of acceptable collateral, which drew each condemnations principally round centralized threat being added to the system and reward for making the system extra sturdy in opposition to sudden ETH collateral value crashes.
And now most just lately, the Maker Foundation which had held some centralized management over the protocol accomplished their long-planned exit with all authorities now transferred to the holders of MKR tokens, eradicating each a level of management which had been used as a security test and a level of threat in that centralized management will be co-opted and used to disrupt a system as we have seen in different examples.
On right now’s present we’re digging into:
Hosts: Adam B. Levine, Andreas M. Antonopoulos, Jonathan Mohan & Stephanie Murphy