DAI Circulating Supply Reach less than 160M

VictorProsh

jr. member

Activity: 475

Merit: 2

я открыт

Quote from: crypto1010 on July 03, 2020, 05:06:44 AM

The circulating supply of DAI is less than 160M. However, 500M DAI tokens are now deposited in Compound.

This contradictive reality exists because DAI is being borrowed not for usage in trades. Instead, borrowers are transferring DAI to new wallets to re-lend DAI they borrowed.

Borrowers are essentially lending DAI to themselves over and over.

According to stats on the compound. finance markets detail page, there is $523 million worth of DAI held in reserves. In fact, the market overview of the compound.finance total supply is $1.3 billion to-date. That specific data metric includes all the tokens that are leveraged on the Compound platform.
https://news.bitcoin.com/investment-firm-arcane-crypto-to-go-public-via-33-million-reverse-merger/

VictorProsh

jr. member

Activity: 475

Merit: 2

я открыт

Quote from: DoubleEdgeEX on July 03, 2020, 05:39:51 AM

That´s a pretty insane setup. DAI User 1 lends DAI User 2 and vice versa. Does the DAI backend have the moey or assets in custody that they can issue that much money 1:1? ...or is it like with Tether where they just issue new coins without the underlying securities?

DAI differs from Tether in that it is issued under the asset of your Ethereum, and for the rest it is also vulnerable and also manually controlled like all existing stablecoins.

DoubleEdgeEX

member

Activity: 112

Merit: 17

That´s a pretty insane setup. DAI User 1 lends DAI User 2 and vice versa. Does the DAI backend have the moey or assets in custody that they can issue that much money 1:1? ...or is it like with Tether where they just issue new coins without the underlying securities?

crypto1010

full member

Activity: 581

Merit: 108

The circulating supply of DAI is less than 160M. However, 500M DAI tokens are now deposited in Compound.

This contradictive reality exists because DAI is being borrowed not for usage in trades. Instead, borrowers are transferring DAI to new wallets to re-lend DAI they borrowed.

Borrowers are essentially lending DAI to themselves over and over.

Topic: DAI Circulating Supply Reach less than 160M (Read 110 times)