THELOGICALINDIAN - Rune Christensen one of the founders of Maker the decentralized free alignment abaft the babyminding of stablecoin DAI has announced out adjoin two competitors He declared that UST Terras dollarpegged stablecoin and MIM addition collateralized stablecoin were solid ponzis and that the buck bazaar would eventually advance their prices to zero
Maker Co-Founder Calls Out Competitors
Rune Christensen, one of the co-founders of the alignment abaft the conception and development of DAI, a decentralized stablecoin, has alleged out two competitors. Christensen indicated that he got annoyed of actuality nagged by UST and MIM “reply guys” on Twitter, and adumbrated his assessment about these two almost new stablecoins, comparing them with DAI. Christensen stated:
Christensen abundant by advertence that DAI was congenital for animation while acquainted that the activity is the best accurate aback it comes to acute affairs and accessory security. However, UST flipped DAI as the best admired stablecoin activity aback in December. Still, DAI is ranked additional amidst decentralized stablecoin projects by bazaar capitalization.
Engineered Differently
While MIM, UST, and DAI are all decentralized stablecoins in name, anniversary one of them is engineered differently. While DAI and MIM are collateralized stablecoins — acceptation that there are added assets abetment their amount in case of a selloff — UST is a authentic algebraic stablecoin, whose peg is maintained through arbitrage incentives.
Criticism of these collateralized stablecoins has appear from the actuality that some of the funds abetment the assets are composed of centralized stablecoins. In fact, according to a clear provided by Christensen, 37.4% of DAI generated is collateralized with USDC. However, Christensen acicular out that MIM additionally had problems in this regard, hinting at the achievability of it accepting a college allotment of its abetment based on centralized stablecoins.
The stablecoin area grew massively aftermost year, with USDT, the better stablecoin in the market, activity from a $20 billion bazaar cap at the alpha of 2020, to a abreast $80 billion assets starting in 2021. But decentralized alternatives grew alike more, with UST adding its bazaar cap by added than 50 times. In the aforementioned way, MIM has managed to ability a $4.6 billion assets back its birth aftermost September.
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