How MakerDAO Works
ฝัง
- เผยแพร่เมื่อ 28 พ.ค. 2019
- An illustrated guide to the lending platform/DeFi app MakerDAO and its tokens, MKR and DAI. Got questions about fluctuating interest rates and collateralization? We've got you covered.
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Holy hell. More confused than @0:01
I think the yellow guy needs a more developed backstory for this to connect.
When you are so libertarian you invent the government.
When you are so libertarian you create a central bank DAO
Not an easy concept to understand. You did a good job of explaining it.
But surely if the people who hold large amounts of MKR are making the decisions on what interests rates should be it is kinda centralised. Or am I missing something?
yes, it's more like FED in a form of shitcoin whale.
Great video. Very helpful as I journey down the dark, deep rabbit hole that is DeFi, liquidity mining, yield farming, etc.
Beautiful video! Great job! 🙂👍
Wonderful and clearly explained video. Thank you😎
Well Done!
Especially the piggy, that was particularly impressive.
love this do more please!
Thank you for this!
This was s great video I wish u guys could make one of these for at least the top 10 coins. Thanks
What a great video. Thank u!
Great explanation, made this really simple for incomes to understand :)
Just wow, great content.
Made it to around 5 billion DAI minted, they'll have the richest developers long term
Great video and great explanation. Plz lower the music volume though 🙏
Great MakerDao tutorial, nice explanation
well made. thanks for the content 🙏
@3:22 : interests are paid in DAI, not in MKR according to the whitepaper I've just read. Or maybe the protocol changed afterwards?
if you borrow DAI by locking ETH you need to pay interest in MKR , you can also borrow DAI from others DAI holders and shit , there you pay in DAI :P
If I want to become part of this ecosystem, I just need to buy MKR tokens and hold them in their wallet? I guess the wallet will give me also possibilities to participate in voting on the interest rates?
Exactly
If you cannot create more MKR, what happens if they run out of MKR? Thanks
I think value of mkr against usd will increase so interest in mkr will be lesser.
what is the point in getting a Dai loan when you've got to put up 1.5 times collateral why not just use the collateral money you have in the first place, I don't understand the benefit if you can't borrow more than the collateral currency?
I have this same question. As best I can figure, the advantage is that you don't have to liquidate your ETH position, and instead leverage your ETH for a stable currency. Once you repay the DAI, you unlock your ETH, which is volatile and may have increased or decreased during the loan period. You could alternatively liquidate your ETH, but then you are stuck buying it back at the current price. Seems like the biggest disadvantage is that you would need to monitor your colateral to ensure price fluctuations don't bring you below that 1.5 mark and wind up loosing your ETH deposit! I'm still not sure I 100% understand.
OKlensecap yes and its decentralized stable coin
I’m not sure it makes any sense if you are using and comparing to fiat markets, at least in USA. You can argue control all day but US lending markets are pretty damn efficient and at the end of the day, loan cost is loan cost regardless of technology. Cool though, especially for crypto income only households, so let’s see where it goes.
perfect video, very explanatory. Thank you
What is the point of taking a loan when you have to pay 1.5 in collateral? I'm clearly missing something, can anyone explain?
Have the same question!
My understanding is you get to leverage your ETH that you don't want to sell as it most likely will appreciate to go speculate on another crypto coin or investment. So if you have ETH laying around you are holding long term, you can basically get 2/3 of that as DAI to go invest in other things for a fee. $3.7B Dai created tells me people are definitely utilizing this. 1.5 ETH collateral is also good for the MKR holders as there is a good buffer on the collateral in case of a downturn in the Crypto market. the MKR holders are taking the risk of having to bail out the system in a downturn is my guess with production of more MKR coins to cover this (driving down the price of MKR). Why they are rewarded with burned MKR later.
Well if you made a bunch of equity in crypto it’s fantastic because you can borrow money without realizing capital gains. The lockup in this video isn’t all that much money in the grand scheme of lending industry, but it is a massive leap into trying to remove/reduce the middle man costs. Beware though (at least in USA) you can get a loan, also with similar collateral structure (say 50% of your home equity), for 3-4%, locked, guaranteed, and insured. Options are really cool.
No mention of how mkr tokens are created
Let me ask you this. How much eth does it cost your to buy $100 of DAO????? Correct me if i'm wrong but $300 of ETH will get you $100 of DAO. I don't get it. In the mean time ETH could sky rocket but you will miss out on that because you bought a stable coin with it.
You never lose the ETH you lock up, it is still in your possession, like the collateral for a bank loan. I believe you can retrieve it by repaying your DAI debt.
Am million trees died making this video LOL
💎
Cool, except the 10% to 30% for traditional banks is wildly false. Home loans, arguably the most common (50 Trillion in 2020, just in USA), have been sub 5% (more like sub 4%) for the last ten plus years. Although this is a great project, you kind of blow your credibility right out the gate by using the 10-30 as your strong point for benefits.
Watching in 2021. MKR NOW $4700.
You will need more efforts to clarify your concept !! Who wants to pay 19% interest decided by MKR holders ???
They aren't supposed to want to borrow at that interest rate... it's to disincentivise people from creating more DAI so that the supply can shrink and and it can maintain its price peg to the us$. When more dai need to be produced the interest rate will decrease.
@@Castle3179 what, can u say it again diffenently.. please🙂
@@londongabaldon9894 When the market puts downward pressure on the price of DAI relative to a dollar, interest rates rise so that collected interest (in this case in ethereum) can be used to buy up DAI to raise its price back to a dollar and the higher interest also discourages people from borrowing and creating more DAI. (Creating more DAI reduces the value of DAI).
When the value of DAI is higher than a dollar interest rates are lowered to incentivize the creation of more DAI to lower the price.
@@Castle3179 omg my head, nothing make sense. Try to explain it to me like im a 5 year old
@@saifury2 Basically the interest rate is used to help balance the value of Dai. So a high interest rate will encourage people to pay back their loan - this can be used to ensure Dai remains stable at $1. The interest rate should stabilize - as the value of Dai stabilizes.
still don"t get the point why ? why Dai is needed ?? It tells how but not why. why lock up what you have to get something less than what you lock up ??
my guess is they don't want anything to do with fiat
It allows you to shelter gains on ether, since Dai is a loan there is now
capital gain. Also if you buy ether with the Dai you are leveraging your return since you can rebuy Dai at a better price if ether goes up in value.
19.5% ? and I'm trying to run away from my 11.99% credit card, lol
did not understand a shit after a bottle of a wine.
#dabbyfinance
Very unique and interesting project.
this girl has hairy arms
I knew someone will say that😂
Lol this shit is gonna go so damn high. Such a low circulation of MKR tokens it's a no brainer to get some 🤑🤑🤑🤑🤑
Maha to the moon!!
I simply do not get the idea of borrow money that you already have. Just unreal for me.
It is the same as mortgage, but here you locks eth instead of house.
@@selttem With mortgage I can use the house, can I still use the eth while locked?
@@trueMaxi You cant use Eth. You can use Dai and still hold your Eth (or other crypto). Usecase: when you need cash but you dont want to sell Eth.
No need for adding Bg music
Why you wasting so much paper man? You can do this on an animated board online, right?
Soooo.
Whats the point if loans are 19%
Seems a lil odd..
If thats the best a community could agree on then....
Umm..
Seems like a double f up...
I don't think you want the people who are profiting off the system to actually come up with the percentage rate.
That seems like a no-brainer..
Isn't that how we got into this mess in the first place.
It's like me saying here's a solution to credit cards and banks.... how about higher interest rates
or am I missing something here
They aren't supposed to want to borrow at that interest rate... it's to disincentivise people from creating more DAI so that the supply can shrink and and it can maintain its price peg to the us$. When more dai need to be produced the interest rate will decrease.
Rube Goldberg coins, sheesh
This guy who is drawing really hasn't spent time to understand the concept of Dai
Remove background music
I think the a stable coin should be stabilized by algorithms, and most transactions should be decentralized on the network. They should use the blockchain more. This is low thinking.
take my money, what money, the wtf is money anyways?
Mind fuck
Im not tryinna hair shame here but her arms are really really hairy...
hmmm, all I could focus on was the fact that you have a really girly sounding voice for a guy.. either that or really hairy arms for a girl.. just kidding, great video, thank you!:)
This is so distracting sorry
Rip bozo
You waste too much paper
Im so sorry way too much smacking in your mouth i cant understand.
That's an odd thing to notice have you got issues with general oral things?
Perhaps your mother was a bit harsh on you or you have an unusual focus on the mouth...
Just a very strange things to say..
Whatever the case may be thank you for the entertainment....
Don’t get me wrong the video was great its her Microphone that has to high frequency so ever time she closes her mouth I can heard it I tried to look past it
Maybe your mother was way too harsh on you matt to take that comment way too serious you should understand what Constructive criticism is