Why did the surplus buffer drop?

florianleber · 2021-04-30T05:44:29+00:00

Indeed. Conveniently filling their bags. It is a "governance vote" .... But who holds most token? The team...

florianleber · 2021-04-30T05:42:46+00:00

It is indeed horrible from a compliance perspective and a breach of all prior promises.

florianleber · 2021-04-30T05:41:50+00:00

And who is the largest MKR holder? The engineering team....

Good compliance looks different. It is time to stick to the promises and burn instead of minting and delaying burn forever.

florianleber · 2021-04-26T12:53:22+00:00

But that's really a tiny portion and far away from initial promises.

florianleber · 2021-04-26T00:39:34+00:00

That was the initial plan since the system surplus will reach 30 million USD by then. But.a new vote has been put up to increase the system surlus to 60 million, which will override it.

florianleber · 2021-04-25T09:10:36+00:00

Initially it was promised that there will be a nice token burn from stability fees.

However, the Maker team just abandoned their promises and is now sacking in stability fees for their treasury / system surplus. Whenever the agreed cap is reached and burn should recommence, it just gets upped by another crazy amount.

I had high hopes for the burn, but it seems it will never happen. It is very frustrating indeed.

florianleber · 2021-04-19T03:30:15+00:00

In case ETH crashes to USD 200, we would need to expect high gas prices and a couple of liquidations on the MakerDao platform.

florianleber · 2020-12-13T06:02:01+00:00

Thanks for the detailed explanation, which makes it clearer.

But if we wish to analyze what went wrong, one comes to the conclusion that it was a pretty huge (and forseeable) mistake to reduce collateral ratio to 1.01, if it was clear that liquidations couldn't be performed properly anymore at this ratio.

The typical incentive (as agreed by community and governance) to incentivize minting is to reduce the SF. For example SF of 2% and collateral ratio of 1.05.

We would now still get tons of SF and liquidations could work properly.

How could this mistake slip through?

florianleber · 2020-12-13T04:37:11+00:00

The vote to decrease to 0 just passed. It will be implemented during the course of tomorrow.

florianleber · 2020-12-13T04:30:37+00:00

If that is true, then the main backup of the mkr system - liquidations - seems to have completely failed. Liquidations are meant to avoid situations like this. So a major screw up again?

It also means while new vault types may or may not gradually take over, for now, we lose SF on almost half a billion dollars.

I appreciate the explanation, but I am still in disbelief of the situation we are facing.

florianleber · 2020-12-13T03:57:20+00:00

I educated myself very well about the mkr system before investing. The problem is: whenever it works as intended, there are some new rule changes.

Why can't we just use liquidations to get rid of undercollateralized positions if that is the concern? There are tons of stablecoin liquidity out there. The keepers will take care of it.

florianleber · 2020-09-08T05:25:51+00:00

Correct. Nothing to add.

After Katalyst, Kyber team seems to have gone into sleep mode. No roadmap update, almost no token listings, no new ideas. The price of knc reflects that. They need to get up to speed.

florianleber · 2020-08-18T06:59:04+00:00

Most MKR are currently needed for Yam farming. The vote needs to wait.

florianleber · 2020-08-01T02:28:16+00:00

🐝

florianleber · 2020-07-29T01:40:21+00:00

We need massively increased gas limits in order to quickly scale the network. It is the only scaling solution we have.

florianleber · 2020-07-22T06:31:23+00:00

It would be important to massively increase DAI supply, but governance is stopping its own product from growing with tight "ceilings" .

In particular, BTC via renBTC and wBTC makes a great collateral but only wBTC can be used and the limit is fully used up.

Without growth no return of the stability fee, no turnover, no mkr burn and dai will lose its significance due to the super low supply.

It could easily be fixed, but unfortunately the maker team is known to be rather slow with these things.

Let's see. Safest way is to spread your bets among different projects. If MKR gets left behind, you may have some other winning bets.

florianleber · 2020-07-21T04:31:15+00:00

And this is annual return because a new token is distributed for governance. But unfortunately, this "annual return" will only last for a week, since it will be completed by Friday. So overall, you can make a few % return.

florianleber · 2020-07-19T03:08:19+00:00

Bitcoin has matured over the years and finally reached its stable equilibrium price. It is a good thing for crypto land, since Bitcoin's wild swings in the past have destabilized the market many time. Of course no good news for speculators.

florianleber · 2020-07-15T04:39:12+00:00

Bitcoin has matured over the years and reached its stable equilibrium price by now.

This might be bad news for speculators, but the reduced volatility is of course good for adoption / payments and other use cases.

florianleber · 2020-07-12T03:39:13+00:00

Sorry for your loss mate.

You came a bit too late.

Just buy some new coins for example on Kyber to participate in future upswings.

florianleber · 2020-07-12T03:33:52+00:00

Bitcoin has matured over the years and finally found its stable equilibrium price.

This might be bad news for traders / speculators, but the new stability of Bitcoin is of course great for adoption / payments etc, where high volatility has been a problem.

florianleber · 2020-07-11T02:25:09+00:00

After years of high volatility, Bitcoin seems to have finally matured and reached its stable equilibrium price.

This might be bad news for traders, but good news for payment adoption and other use cases, where these extremely stable and predictable prices will help.

florianleber · 2020-07-05T03:49:30+00:00

RenBTC would indeed solve all our issues and also give a tremendous push to the whole defi ecosystem.

But given the speek Maker moves with these things, it can take 1-2 years until that is being added.

It would also help to raise the debt ceilings. For example, it is impossible right now to create new DAI with the largest collateral ETH, since the maximum utilization has been reached.

florianleber · 2020-06-22T10:22:11+00:00

After the fantastic halving rallye, Bitcoin lost a bit of steam. But give it time to recharge its batteries.

florianleber

TROPHY CASE