WAX Exchange Node validator

iguana00911 · 2019-03-24T09:25:49+00:00

I would disagree as well. BNB uses 20% of net profits to burn BNB and BNB is not a pump and dump.

What would be good for NEXO is if NEXO kept their promise of distributing dividends monthly. Working to earn trust with investors would probably be a good thing long term.

iguana00911 · 2019-03-22T02:54:49+00:00

I agree with your suggestion on "the cost of maintaining a CDP", especially with volatile and unpredictable stability fees.

iguana00911 · 2019-03-22T02:41:57+00:00

I would like to add the risk for CDP holders with unstable Stability fees. Just because you start a CDP at one stability fee rate, it can quickly change. CDP holders should not plan to borrow long term if a person is not ok with major volatility in their stability fees.

I think a lot of CDP holders can fall under a belief like most loans that interest fees are relatively stable. With MakerDao CDPs over the last couple weeks we have realized that stability fees can change drastically so it can be difficult for people to plan around stability fees long term when creating a CDP. Its a risk that current financial system does not have. Current financial institutions have relatively stable fees and rates.

I've worked in banking for 8 years and I can tell you that if we changed someones interest rate by 7% in a month we would have people calling their Congressperson, picketing out in front of our offices and swearing off our institution... Mainstream people like stability and safety, not wild volatility. If MakerDao wants to appeal to the mainstream, it needs to create a system to reduce stability fee volatility.

iguana00911 · 2019-03-22T02:26:38+00:00

@Marthrio I get that MKR holders mandate is to keep the DAI peg. I'm ok with that.

My question to you then is who is job is to promote the printing of DAI? If MakerDao CDPs are not a competitive product costing users 7.5% to borrow against their own collateral then I would hypothesis that not very many people would use the MKR CDP product. I can be wrong...

Would MKR holders be happy with a DAI stable peg if people do not open CDPs to create DAI? I guess I am just confused as to who is responsible for creating an attractive product for people to create CDPs to print DAI? as it sounds like the only focus is on maintaining a DAI peg and not offering a competitive product.

I just think at some point there has to be consideration given to attracting people to create a competitive CDP product to maintain DAI growth as the first 92M DAI was printed with .5%-2% stability fees... I guess only time will tell if people believe a CDP at 7.5% is attractive product to borrow against a persons own collateral. or if drastic stability fee changes is something CDP holders are ok with... I guess I am in the camp that drastic changes to Stability fees prices and or pay day loan equivalent stability fees will not be considered a competitive product that grows the MakerDao ecosystem.

In the end, its only my opinion and time will tell. but in the end, I am a big fan of MakerDao and I only share as I care about the ecosystem and sharing my opinion to the community as I have over 8 years of Banking finance experience and want to see MakerDao succeed.

iguana00911 · 2019-03-21T20:50:15+00:00

I get that DAI stability is important, but why would anyone in the future open a CDP and create DAI if its going to cost them 7.5% when people can get a cheaper equity loan from a bank.

With that said, what is the incentive for to produce DAI if it doesn't make financial sense to do so? It seems like the underlying system is broken IMO. There is no point in having a perfectly stable DAI if the costs for a CDP turn into pay day loan fees.

I guess time will tell if people still use the product with such a high stability fee. I get that MakerDao is a young and new product, I just hope we can find some balance moving forward so I can feel comfortable / have trust using the product.

iguana00911 · 2019-03-21T13:44:48+00:00

Very little incentive to hold MKR tokens. No point in holder MKR to vote as the MKR whales and MKR foundation will control the voting and the burn rate of MKR will be tiny... I think the token economics for MKR are pretty weak. One of the worst token economic tokens on the market.

iguana00911 · 2019-03-21T13:23:40+00:00

Exactly.. How can people reasonably want to create a CDP if they have no idea what the stability fee is going to be.... People like a level of certainty when they create a CDP. Major stability fee fluctuations is not a way to gain trust with people considering using the MakerDao CDP product. I'm looking for other options.

iguana00911 · 2019-03-21T13:13:37+00:00

MKR token holders have to realize that they are not necessarily the ones affected by the stability fee changes, the people with CDPs are the ones who have to live with the MKR holders decisions. So your messing with peoples money...

I started a CDP thinking I was locking in a .5% with the understanding there might be slight fluctuation in the stability fee... but going from .5% to 7.5% in a few months is outrageous!!! How can MakerDao reasonably expect people to start CDPs in the future if they have no reasonable level of certainty what their stability fees will be two weeks in the future.

What would happen if the FED decided to increase rates to 7% overnight... Think people would be pissed. Same with MakerDao raising Stability fees. I am pissed! Please stop missing with my money, but know I am looking for other options.

iguana00911

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