The Currency Analytics
By Dan Saada
Maker (MKR) (Dai) Hit Half a Billion Supply
Liquidations have a major role to play when it comes to maintaining the Dai Peg. For those who do not know, Dai is generated by users versus their crypto collateral assets…
To ensure confidence in the liquidation system and to improve the system efficiency, it is important to improve the overall liquidation ecosystem.
Liquidations 1.2 deals with liquidity issues by limiting the numbers of auctions which occurs simultaneously. Liquidations 1.
The price of the Dai is determined by the Market supply and demand. The decentralized governance community will vote to change the incentives, which in turn will influence the…
Sydney Ifergan, the crypto expert tweeted: “Maker (MKR) well know the importance of liquidity and they are ensuring that they maintain the Liquidation Ratio (LR) per their…
The voting process ensures that there is sufficient collateral in the Protocol to provide for the value of Dai which is generated versus it.
Effective Liquidation mechanism is important to sustain the Dai stability and it is very important to retain confidence in Dai, whether for the Vault owners or the Dai users.
The governance also ensures that the collateral auctions take place on time to avoid risk of collateral asset prices falling further leading to greater debt.
Recently, Dai hit half a billion supply. This is considered to be epic and further looks like the new vaults will serve a good purpose.