In line with a recent official ‘reddit post‘ published, DAI stablecoin, that is pegged to the USD, is presently in a comparatively more stable position, in line with the president and COO of MakerDAO, named ‘Steven Becker’.
The transcript of the meeting, that was focused on the demand and supply imbalance, appeared on Reddit. Becker mentioned the effectiveness of the stability fee alongside MakerDAO’s head of community development named ‘Richard Brown’ and ‘Vishesh Choudhry’ of the company’s Foundation Risk Team.
As per Becker, DAI is presently stable due to the community’s implementation of the stability fee. “Consider the peg is stable. but it’s stable at a discount,” he said.
Becker reasoned that the fluctuations of the stablecoin’s rate aren’t essentially due to the supply/demand imbalances. He speculated that this development might be a reflection of the industry’s present regime.
Last week’s community ‘vote‘ was between an additional 2% and 3% increase, with the latter coming out ahead. Recently, on 3rd May, an executive vote on the further 3% increase was witnessed. However, its results have not be officially revealed yet but if it passes, the stability fee will now around 19.5%.
Foundation Risk Team’s Choudhry added that the fee isn’t particularly a burden. As the stability fee changes, the pin-point of bullish/bearish equilibrium shifts, making it a very critical call.
MakerDAO ‘launched‘ DAI earlier in the month of December last year as an ERC-20 token pegged at 1:1 with the USD. This rate is maintained via over-collateralization with Ethereum [ETH]. However, for much of 2019 DAI has been below $1 USD and has even fell below $0.95 USD from time to time, in line with ‘CoinMarketCap‘.
As ‘reported‘ earlier, MakerDAO users have voted to extend the stability fee on many occasions this year. Still, the community isn’t totally convinced that the worth of DAI has stopped fluctuating. If MakerDAO implements alot more substantive solutions, DAI might become crypto’s default ‘stablecoin‘.