Sirwin
Sirwin

DAI slowly recovering its peg but still lagging behind other stablecoins

By DefiMoon | DeFiMoon | 22 Apr 2020


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DAI is finally starting to make its way back to the $1 mark.

Since MakerDAO voters lowered the interest rates on vaults collateralized with ETH and BAT to 0%, the supply of DAI has steadily grown by about 10 million DAI. This growth shows confidence and demand for DAI is slowly returning to the market.

The major concern for vault owners after Black Thursday (March 12) was that another crash in the price of eth could cause a repeat of the 0-bid attacks where vault owners lost 100% of collateral, but that concern seems to have subsided for the time being.

Additionally, vault owners can feel much more confident now that collateral liquidations can be done by anyone (not just developers running liquidation bots) via DefiSavers' new liquidation portal: https://defiexplore.com/liquidations

While DAI is slowly recovering its peg, the project is still lagging behind other stablecoins in terms of circulating supply, daily volume and daily transactions numbers.

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CoinMetric's charts show USDC and PAX are also ahead of DAI in daily transactions. Tether on ethereum has more daily activity than all other stablecoins put together.

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https://coinmetrics.io/charts/

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DefiMoon
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DeFiMoon
DeFiMoon

The DeFiMoon blog is about news and developments concerning decentralized finance (DeFi) protocols (Compound, Maker, AAVE, DDEX, dYdX) and stablecoins (USDC, DAI, USDT, TUSD, PAX).

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