Maker co-founder calls VAT and MIM solid ponzis that will go to zero-
Maker co-founder calls VAT and MIM solid ponzis that will go to zero-
Rune Christensen, one of the founders of Maker, the decentralized autonomous organization behind the control of StableCoin DAI, has spoken out against two competitors. He explained that VAT, Terras bound by the dollar, and Mim, another secured stable coin, "solid ponzis" and that the bear market would finally lead their prices around zero.
Maker co-founder calls out competitors
rune Christensen, one of the co -founders of the organization behind the creation and development of DAI, a decentralized stable coin, has proclaimed two competitors. Christensen that he was tired of being annoyed by VAT and MIM- "Answer-Jung", and his opinion on these two relative Stable coins expressed and compared them to Dai. Christensen specified :
look, VAT and mim are solid ponzis and I respect that. You can certainly make good money with it. But they are not designed for resistance and will go to 0 as soon as the market really turns.
Christiansen stated by pointing out that DAI was designed for resistance while he found that the project is the most trustworthy when it comes to intelligent contracts and collateral. However, Umbled Dai as the most valuable stable coin project in December. Nevertheless, after market capitalization, DAI takes second place under the decentralized stable coin projects.
different constructed
While Mim, VAT and DAI are all decentralized stable coins, each of them is constructed differently. While DAI and MIM are secured stable coins-that is, there are other assets that cover their value in the event of a sale-VAT is a pure algorithmic stablecoin, the binding of which is maintained by arbitrage incentives.
The criticism of these secured stable coins is due to the fact that some of the funds that support the assets consist of centralized stable coins. In fact, according to a graphic provided by Christensenses are 37.4 % of the generated DAI with USDC. However, Christensen pointed out that Mim also had problems in this regard and indicated the possibility that it could have a higher percentage of its support based on centralized stable coins.
The Stablecoin sector growth massive last year, with usdt , the largest stablecoin on the market, which rose from a market capitalization of $ 20 billion at the beginning of 2020 to a capitalization of almost $ 80 billion from 2021 from 2021. But decentralized alternatives grew even more, since the VAT multiply its market capitalization by more than 50 times. In the same way, Mim has managed to achieve a capitalization of $ 4.6 billion since it was founded last September.
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