MakerDAO, rebel no more?
There are two kinds of stablecoins. The centralized type is implemented on a blockchain but anchored to Wall Street and the Federal Reserve. Dai, a decentralized stablecoin governed by the Maker Decentralized Autonomous Organization (or MakerDAO) is emblematic of the second type. It stays as far away from The Man as possible.
J.P. Koning, a CoinDesk columnist, worked as an equity researcher at a Canadian brokerage firm and a financial writer at a large Canadian bank. He runs the popular Moneyness blog.
But over the last month or two, something strange has been happening. Like a vegan eating a steak, dai has been gobbling up huge amounts of centralized stablecoins as collateral. Has dai, once so edgy, donned a suit and gone Wall Street?
MakerDAO’s ingestion of centralized stablecoins is part of its strategy for bringing Dai back in line with its $1 target. It’s