Uh, guys?

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

Attached: 20190419_214006.jpg (720x666, 154K)

I don’t get it

Attached: 349C8505-7D27-4C21-B5EA-0F89EEA87D91.jpg (750x751, 60K)

That's what happens when nobody uses it

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.

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.

It's clearly not working. This incentive mechanism is fucked.

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

Attached: water.webm (960x544, 2.7M)

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.

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.

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.

Look, I really don't understand the economics of Maker enough to be making any predictions. This just looks fucked though. What's the point of a collateralized debt position if you have to pay higher rates than a traditional loan?

Yeah, some other coool projects are implementing DAI like Althea Mesh, Flyingcarpet, etc. I do want to see this succeed. Just looks sketchy that's all.

i still don't get the stability fee. i thought the whole point of maker and dai was to lend money and people that staked got interest

Heres my understanding- stability fee is paid in MKR and burned, lowering supply of MKR. So your MKR goes up in value but you don't see any realized gains until you sell it

Maker lets you take out a loan from yourself. You can speculate with the loan and with the collateral at the same time. It's not a regular loan.
>i still don't get the stability fee. i thought the whole point of maker and dai was to lend money and people that staked got interest
the point of maker is to make sure that DAI is 1 dollar. The people who stake do not earn interest, they pay it. Maker can raise and lower the interest rate to make sure DAI is stable. Right now DAI is under 1 dollar so the rate should go up. In the future some of this interest will go to DAI holders who lock up their DAI in a savings account. This creates another stability mechanism for maker to influence the demand for DAI.

Maker doesn't understand liquidity or the traps therein

Some people think cucumbers taste better pickled.

>Who's going to want to open a CDP if it costs this much to close it
No one. That's the point. There is too many cdps being open so too much dai is being created. They have to essentially make it unappealing to create more dai until it balances out.

Reminder that about 2 million eth are bound up in CDPs. Maker DAO are on the record saying that if their experiment fails or if they get complacent, the entire eth ecosystem will be flung into turmoil.

Another reminder that less than 6 months ago the 'stability fee' (which is an interest rate) was about 3% when dai was about 97c. Maker then recently increased the rate to 7.5% in one hit to try to reach DAI dollar parity, causing DAI>$1. Now the rate is 14% and its below a dollar again.....

So clearly the dollar peg mechanism is being strained hard. Im super into MKR as a concept but i fear their experiment will be ill fated.

traps aren't gay

maker is a single centralized API sending prices info to the blockchain every minute. It's a centralized scam that would take like 5 minute to code. No idea why retards invest in this shit, it's gonna inevitably get hacked.

Extremely bearish for eth if true.

it is true, there's no way to send send price data to ethereum other than sending it every minute from a centralized server.

I thought they paid oracles for this?

If maker goes, eth dumps to double digits.

Looks like it's not a matter of when, not if. God damn these idiots and their retarded little experiment.

its all because btc made people nervous holding dai and many try to cash out not to miss the bulltrap/bullrun so they dont give a fuck about incentives just want out without much loss

oracles are servers running datafeed api

This is why i hold SDS. Cheaper rates.

no one cares about this shitcoin, ETH won't move

THAT'S THE FUCKING IDEA!
DAI is 98 cents. And the most important thing is to keep it pegged to $1. That means there's too much DAI on the market. So they're raising interest rates. Just like the fed does when inflation shows it's face.
Don't like it? STIFF.

How losing 2 millions locked eth and basicly decreasing suply makes eth crash you mongo

The system wasn't launched to give people cheap credit to long ETH. It's working fine, if you want to change it, just buy 50,000 MKR and vote like the rest of us, pleb.

Attached: 1554810693893.png (225x225, 4K)