What the fuck is this? Is Maker imploding? Who's going to want to open a CDP if it costs this much to close it? I feel like it's reaching a tipping point and people will not open new CDPs while closing existing ones before the fee hits something even more retarded. This really doesn't look like much of a stablecoin to me anymore
Uh, guys?
Kevin Rogers
Benjamin Mitchell
I don’t get it
Caleb Ortiz
That's what happens when nobody uses it
Alexander Morgan
The point is to make CDPs buyback DAI and increase the price of DAI back to exactly 1$. At which point the stability fee will likely be voted lower until equilibrium is found.
Joshua Price
Stability fee has been raised like 3-4 times this year. It was definitely at like 3% a few months ago. Dai still has not returned to parity with the dollar. Positive feedback loop initiated.
Liam Williams
It's clearly not working. This incentive mechanism is fucked.
Owen Rogers
CDPs are not the product. DAI is the product. They are raising the rent on your ass to get you to buy DAI and close your CDP. DAI is currently 96 cents. It should be 1 dollar.
The stability fee (interest rate) will likely need to go above 25% because degenerate gamblers are still not closing their CDPs at the current rate.
>t. DAI holder and not a degenerate gambler
Bentley Moore
Degenerate gamblers are the ones emitting DAI into the crypto market to begin with. No one is going to want to use this CDP platform and DAI is going straight to zero.
Hudson Butler
If nobody wants to use Maker then why aren't people repaying their CDP debts? Because they don't mind paying interest out the ass. Maker will gradually raise the rate until the equilibrium is reached.
Levi Jenkins
Atm DAI isn't really used for anything but paying stability fees but new uses are coming online rapidly (Augur DAI betting for example) that will help drive demand.