The challenges Bitcoin’s wild volatility represents for achieving mass adoption have made the necessity for stable cryptocurrencies apparent long ago. With Ethereum applications, the problem is even more apparent as many use cases from predcition markets to insurance are impractical using the even more volatile ether. Maker DAO is an ambitious attempt to solve the problem by building a bank-like system to issue a value-stable currency on Ethereum.
Rune Christensen joined us to discuss the need for Maker and the complex system to guarantee stability.
Topics we discussed in this episode
- Why money is the most successful product ever
- What makes stablecoins are necessary
- The different components of Maker such as the stablecoin Dai, the token MKR and the role they play
- Why Maker needs insurance against black swan events
- Maker’s different planned stages of increasing decentralization
- The MKR token sale and its value proposition for investors