cryptobanking

MakerDAO is a very strange thing, a credit protocol, that is also trying to act like a lending protocol. I feel like one can do one or the other, but not both well in  eurodollar system. Its massively complex, yet still not even competing with wrapped eurodollars.

MakerDAO is a very strange thing, a credit protocol, that is also trying to act like a lending protocol. I feel like one can do one or the other, but not both well in  eurodollar system. Its massively complex, yet still not even competing with wrapped eurodollars.

https://x.com/ImperiumPaper/status/1803405670173007962?t=h7sUEqSeAzdeqK0sWCwlwA&s=19

Co-founder Phoenix Labs - contributing to Spark. Previously Protocol Engineering @ MakerDAO.

I would say credit protocols and lending protocols differ because credit has to maintain par, so it has stricter requirements for collateral to meet those liquidity guarantees. It's very hard to grow a stablecoin, but totally fine to grow lending.

My issue is MakerDAO fails at its base credit requirement as wrapped dollars that easily meet par requirements clearly have dominated.

Bad money drives out good money.

What's the difference? Stablecoins and lending are the same thing. It's just a question of how strong your liquidity guarantees are.