Rune Christensen, CEO and cofounder of MakerDAO, explains the intricacies of the MakerDAO system, which includes the stablecoin Dai, which is pegged to $1, backed by collateral, and whose governance is managed by holders of the MKR token. He describes how the current version of "single-collateral" Dai, is backed by ether, how Dai is created with a collateralized debt position and what happens when the value of the collateral falls too low. He also talks about the roles of various players in the system, such as keepers, oracles and MKR token holders. We also cover how the system handles black swan events or other emergencies. The MakerDAO system is so complex, however, that we will reconvene for a part 2 to describe the rest of the system and how a multi-collateral Dai will function.
Thank you to our sponsors!
Tokensoft: https://www.tokensoft.io
Microsoft: https://twitter.com/MSFTBlockchain
CipherTrace: http://ciphertrace.com/unchained
Episode links:
MakerDAO: https://makerdao.com/en/
Rune Christensen: https://twitter.com/RuneKek
Previous Unchained episode on stablecoins with Rune and Philip Rosedale of High Fidelity: https://unchainedpodcast.com/why-its-so-hard-to-keep-stablecoins-stable/
Unconfirmed episode with Rune on Andreessen Horowitz's $15 million investment: https://unchainedpodcast.com/rune-christensen-of-makerdao-on-its-15-million-from-andreessen-horowitz-ep-039/
MakerDAO white paper: https://makerdao.com/en/whitepaper/
Decreasing the stability fee: https://medium.com/makerdao/decreasing-the-stability-fee-1f9fe50cf582
Unchained episode on generalized mining with Jake Brukhman and Tushar Jain: https://unchainedpodcast.com/coinfunds-jake-brukhman-and-multicoins-tushar-jain-on-generalized-mining-ep-92/
Laura's TEDx talk: https://unchainedpodcast.com/lauras-tedx-talk-how-crypto-could-allow-more-people-to-be-their-own-boss-ep-047/
USD Coin's banking partners: https://support.usdc.circle.com/hc/en-us/articles/360015278272-Who-are-the-banking-and-financial-partners-you-are-using-for-USDC-
TrueUSD's trust companies and their correspondent banks: https://blog.trusttoken.com/who-are-the-correspondent-banks-and-trustee-partners-for-trueusd-e12508f0d5a2
The US vs. Crypto: Jake Chervinsky on Crypto's Legal and Regulatory Status - Ep. 635
After the Bitcoin Halving, Will the Runes Protocol Live Up to the Hype? - Ep. 634
Arthur Hayes and Will Clemente on How This Bitcoin Halving Is Different - Ep. 633
Gary Gensler’s Case Against Uniswap: Does the SEC Even Stand a Chance? - Ep. 632
The Chopping Block: The EVM Parallelization Dilemma, Solana's Network Congestion, and Avi Eisenberg's Legal Battle - Ep. 631
Polygon’s AggLayer Wants to Be a Hub for Ethereum Layer 2s. Can It Succeed? - Ep. 630
Ethena’s USDe Grew to $2 Billion in 7 Weeks. Is It Safe? - Ep. 629
The Chopping Block: The Dawn of the DeFi Civil War - Ethena, SBF, Blast & More - Ep. 628
The Real Reason Why the SEC Might Be Going After Ethereum - Ep. 627
How 'a Criminal Choice' Got Sam Bankman-Fried a 25-Year Prison Sentence - Ep. 626
The Chopping Block: Institutional Memecoin Craze, BASE vs. Ethereum, and Legal Clamps on Rogue Exchanges! - Ep. 625
How Gitcoin 2.0 Could Someday Help Reward People for Doing Good - Ep. 624
How BlackRock’s New Fund on Ethereum Got a Very Crypto Welcome - Ep. 623
The Chopping Block: Memecoin Presales, MakerDAO’s Endgame, and BlackRock's Blockchain Bet! - Ep. 622
3AC's Kyle Davies on Why He's Crypto's Lloyd Blankfein and Why He's Not Sorry - Ep. 621
How Ethereum’s Dencun Upgrade Could Lead to the Rise of Millions of Layer 3s - Ep. 620
The Chopping Block: The Ups-and Downs of Crypto since 2020 and where we are now! - Ep. 619
Why EigenLayer May Be the Most Innovative New Ecosystem Since Ethereum - Ep. 618
The Chopping Block: Meme Coin Frenzy, Decentralized AI, & Uniswap's Fee Strategy - Ep. 617
How, in 7 Weeks, Bitcoin ETFs Reached Inflows That Took Gold ETFs 3 Years - Ep. 616
Create your
podcast in
minutes
It is Free
Pharmacy Podcast Network
Børsen Morgenbriefing
Wall Street Breakfast
Bloomberg Surveillance
Money Talks from The Economist