THELOGICALINDIAN - Rune Christensen says that Terra and AbracadabraMoneys stablecoins are solid ponzis
MakerDAO architect Rune Christensen declared the UST and MIM stablecoins as “solid ponzis” in a cheep beforehand this morning. Abracadabra.Money and Terra founders Daniele Sestagalli and Do Kwon anon accursed back.
MakerDAO Founder Slams Rival Stablecoins
Rune Christensen has sparked altercation by administration his thoughts on two of DeFi’s fastest-growing stablecoins.
The MakerDAO architect took to Twitter beforehand today to alarm out Terra’s TerraUSD (UST) and Abracadabra.Money’s Magic Internet Money (MIM), two rivals to MakerDAO’s DAI stablecoin. In the tweet, Christensen declared them as “solid ponzis” and argued that Terra and Abracadabra.Money proponents were “trying to betray users attractive for absolute stability.” He wrote:
“Look, UST and MIM are solid ponzis and I account that. You can accomplish acceptable money off them for sure. But they are not congenital for animation and they are activity to 0 already the bazaar turns for real. Now stop aggravating to betray users attractive for absolute adherence into actuality ur avenue liquidity.”
“I anticipation you were ded already,” responded Terra architect Do Kwon. Abracadabra.Money architect Daniele Sestagalli additionally advised in, advising Christensen to “focus on extenuative the apple from pollution” and let them “take affliction of DeFi in the meantime.”
Kwon’s “ded” animadversion is acceptable a advertence to Christensen’s credible absence from the DeFi association in contempo months; in November, Christensen came beneath blaze in the MakerDAO association aback a above agent accused him of abiding to the activity and “trying to blaze someone” afterwards demography a abiding footfall back. “Rune has been abroad for a continued period, and in that time he has absitively that we are at war again,” she wrote in a column on the MakerDAO babyminding forum. Shortly after, the adventure basic close Dragonfly Basic enlisted Christensen as a Adventure Partner.
The debates additionally centered on Christensen’s divisive October essay that discussed how MakerDAO should focus on “Clean Money” by ensuring that it uses “sustainable and climate-aligned assets that accede the abiding impacts of banking action on the environment” as its collateral. Christensen argued that MakerDAO should advance its accessory into acceptable real-world assets, but the column led to debates over MakerDAO’s abridgement of direction. MakerDAO’s DAI is currently one of DeFi’s best broadly acclimated decentralized stablecoins with a bazaar cap of $9.1 billion. However, it’s partly collateralized by USDC, a centralized stablecoin issued by Circle.
In October, Terra and Abracadabra.Money announced a affiliation that aims to “beat the centralized counterparts” by leveraging their UST and MIM stablecoins. Both projects accept apparent immense success since; UST overtook DAI’s long-held position as the better decentralized stablecoin on the bazaar amidst the rise.
Both Kwon and Sestagalli accept been articulate adjoin DAI in the past, arguing that the stablecoin is not abundantly decentralized because it’s partly backed by USDC.
Terra’s UST is an algorithmically governed, seigniorage-based stablecoin that relies on an adaptable budgetary action to ensure amount adherence and growth. Unlike MakerDAO’s DAI, it’s not collateralized and leverages the LUNA badge to ensure amount adherence and advance its peg. Abracadabra.Money’s MIM, meanwhile, is an overcollateralized stablecoin agnate to DAI, except the accessory abetment consists of yield-bearing assets.
According to Christensen, the two DAI rivals await on ailing adherence mechanisms that could crumble beneath the burden of acute bazaar forces. The abstract altercation adjoin UST and MIM is that the above relies on abiding appeal for LUNA, while the closing is overcollateralized by “low quality” or rehypothecated assets. Notably, both stablecoins accept maintained their peg during several cogent bazaar pullbacks.
Neither Rune Christensen nor Do Kwon anon responded to Crypto Briefing’s appeal for comment.
Disclosure: At the time of writing, the columnist of this allotment captivated ETH, UST, and several added cryptocurrencies.
