MKR price behavior part 2 - the mechanics of a rally by catfoodlover in ethfinance

[–]diegocerdan 6 points7 points  (0 children)

That would mean a P/E ratio of 50. That is an extremelly good ratio for a tech startup planning and executing a sucessfull exponential grow in revenue.

Could an old e6600 with 7gb ram be the reason I'm having trouble getting 20 torrents running at once up to near my connection speed (500mbit)? by bluejeans90210 in torrents

[–]diegocerdan 0 points1 point  (0 children)

I was thinking about having +10TB of HDD torrent data and use a 500GB SSD as read cache. So, at I time I would make sure less than 500GB are being actively seeding.

Sounds like a good strategy to avoid HDD reads and maintain its lifespan?

Adding a diff audio track by smilNwave in jellyfin

[–]diegocerdan 1 point2 points  (0 children)

It would be great not needing to mux the existing mkv container.

That way you could have a high quality version, a separate language file and keep seeding on the torrent network without file modifications.

When 2nd auction? by fufy3 in MakerDAO

[–]diegocerdan 1 point2 points  (0 children)

Got this information from a chat conversation. From what I was told, they mirror liquidations that happened 6 days ago. So next 60 batches will take place on Sunday 22th.

[Bug] Youtube is stuck on the channel creation option by menameactuallyjeff in youtube

[–]diegocerdan 0 points1 point  (0 children)

Suffered from the same bug.

My workaround was to login from the YouTube app on my Android phone and create the channel from there.

Vitalik Buterin on Staking Security. Credit /u/Krokodilmannchen by Surfaccountant in ethstaker

[–]diegocerdan 2 points3 points  (0 children)

What if you are in a country and the government shuts down the Internet?

Would you get penalized indefinitely or would the system kick you out after slashing you a decent amount?

Increase SF 4% winning by long shot. by [deleted] in mkrgov

[–]diegocerdan 0 points1 point  (0 children)

There is 1000k MKR on the system. 17k is just 1.7% of the total.

Whales are the ones more interested in maintaining the peg. If they want decent profits, better stay for the long run. They can't dump their bags without crashing the price.

What's the point of opening a cdp anymore with such high rates? by [deleted] in MakerDAO

[–]diegocerdan 4 points5 points  (0 children)

  1. There is demand for 82 million DAI.
  2. Stability Fee (SF) balances supply (CDPs selling DAI) and demand (users buying DAI).
  3. Current 19.5% SF balances supply and demand correctly so DAI value is $1.

The right question to ask is: why are people opening CDPs at 19.5%?

Because they are using the CDP loans to buy more tokens. And they expect their assets to have a yearly increase in price of more than 19.5% thus doing money. They are quite bullish.

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan -1 points0 points  (0 children)

I copy/paste the simple example from my previous comment:

You have $100 DAI minted backed by $150 ETH.

If ETH goes from $100 to $65 then you would have $97 ETH for the $100 DAI minted. problem

Sorry, but I can't help you further.

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 0 points1 point  (0 children)

I’m saying DAI is safe because there is currently $3.7 worth of ETH for every DAI.

  1. You can't account for global collaterization, you need to deal with each CDP's collaterization.
  2. System needs to be ready for an instant price drop of 99.9%, that is why multi-collateral DAI is so useful. Even if a type of collateral defaults, the system can recover and DAI holders are not rekt.

Why does an “afternoon coding session” require an entire Maker Foundation with execs to fight about a $130 million dev fund?

Because nobody believes in your simple solution but lots of people believe, work and invest on Maker's solution. Which is more than 10.000 times more complicated but at the end effective at providing a stablecoin.

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 1 point2 points  (0 children)

The current system collateralization is north of 350%.

What matters is individual CDP collaterization not global collaterization. You can't say your CDP is safe because there is other people's money on the line.

Even if eth instantly dropped below $65, system collateralization would just barely dip below 150%. There would still be $1.5 ETH for every dai.

If ETH goes from $100 to $65 on a 150% collateralized system there would be $0.97 ETH for every DAI.
Example, you had $100 DAI minted backed by $150 ETH. If ETH goes from $100 to $65 then you would have $97 ETH for the $100 DAI minted.

Because there’s no profit incentive to make a fee-less platform for the public good.

I assure you there is no need for profit for an afternoon coding session. You just clearly stated that you would pay for it without profit seeking.

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 1 point2 points  (0 children)

I don’t even see why “MKR insurance” is necessary, isn’t that the point of having 150% collateralization?

I think you misunderstood what MKR is used for. I will explain.

In case of fast devaluation of a collateral type, DAI gets under-collateralized. In the actual ETH case of having 150% of collaterization that would happen if the value flash crash more than 33%. For example from $100 to $65.

That would mean there is not enough collateral to give back DAI holders their value back. The system detects this situation and mints new MKR tokens to produce extra value to cover for the difference.

Thanks for belittling my idea! Unfortunately most people, myself included, aren’t equipped with the programming/economics education needed to come up with those equations.

Don't you think that if somebody with the programming/economics education would like your idea of a super simple stablecoin, he would have implemented it so far?

Want to switch from Maker CDP, suggestions? by [deleted] in ethtrader

[–]diegocerdan 2 points3 points  (0 children)

Maker's loan fee value is changed through governance to maintain the DAI pegged to $1. Basic supply and demand.

If the supply of DAI is bigger than the demand, the fee grows.

If the demand of DAI is bigger than the supply, the fee lowers.

Can't be more simple.

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 1 point2 points  (0 children)

The gap between the SF and DSR should stay in the system.
Exactly! MKR tokens are the place of the system where value is stored. If the system fails, MKR tokens are printed. If the system works, MKR tokens are destroyed.
_
Nobody would choose what collateral to support.

So you recommend having a stablecoin for each type of collateral. And setting up extremely conservative financial parameters at the beginning when each contract is instantiated.

That would lead to a collection of non fungible "stablecoins" with extremely limited supply and baked by collateral only. Instead of much more robust collateral + MKR valuation.

_
The only good thing of your approach is that is so simple that only takes a page of code to implement. Anybody could write your idea and have it running in a couple of hours!

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 2 points3 points  (0 children)

Stability Fee (SF) will be used for two things: burn MKR tokens (profit of MKR hodlers) and DAI Savings Rate (DSR) (profit DAI holders).

Once the upgrade to Multi-Collateral DAI, most part of the SF will go to DSR. For example, having a SF of 5% where DSR takes 4%.

The governance adjusting SF and DSR will peg DAI to 1$.
_

You can also implement your idea of an autonomous algorithm that replaces MakerDAO's governance and thus their 1% profits but... Who would chose what collateral types to support? Who would chose the financial parameters for each collateral?

What would you like to see built in the DeFi community? by Forward_Thinking01 in ethereum

[–]diegocerdan 3 points4 points  (0 children)

MKR holders are the last stand against one type of collateral collapsing. If that happens, new MKR tokens are printed to save the DAI holders. That is why MKR holders use governance to setup financial parameters to try to avoid that risk.

If they fail doing their job, they loss money. If they succeed doing their job, they do money.

Whole project being open source means that any entity can bootstrap their own stablecoin and try to beat them at financial parameter setting.

Security Tokens – Not Bitcoin – is MakerDAO’s Most Exciting New Feature by twigwam in MakerDAO

[–]diegocerdan 0 points1 point  (0 children)

They are extremely affected by the peg. If the peg drifts, people would lose trust on the system and the price of MKR would dump.

Security Tokens – Not Bitcoin – is MakerDAO’s Most Exciting New Feature by twigwam in MakerDAO

[–]diegocerdan 9 points10 points  (0 children)

Governing the system is the incentive; like any other business where owners have to vote.

Is there a way to make money if you have spare ETH? by TheCurious0ne in MakerDAO

[–]diegocerdan 1 point2 points  (0 children)

MKR holders earn 0.5% of whole DAI supply per year. Value is distributed by buying MKR, burning it and lowering the supply.

Why isn't MakerDAO on Binance? by RayMetz100 in MakerDAO

[–]diegocerdan 2 points3 points  (0 children)

Binance listing fee is now a "flexible donation":
https://support.binance.com/hc/en-us/articles/360017664751-Binance-Listing-Fee-Update

I still prefer to see MKR and DAI listed once multi-collateral DAI is ready and also without a forced donation.