DAI is created when users borrow against locked collateral and is destroyed upon loan repayment. But what about their Tokenomics? Which is the debt ceiling? The safe ratio when it was created was 150%. Now is 270.98% with 7 main Pools to back up the Stablecoin :)
At first one could only borrow against ether, now we can see many types of.collareral to DAI, the most interesting one came after June 23, when USDC got stressed due to Silvegate bankruptcy, linking it to Circle treasury. The Maker DAO delegates rushed to US treasuries and other RWAs , now it's 10% of the total that sums up to over $14Bi!
Still, The percentages changes overtime: 📊 The debt-to-collateral ratio prompt actions such as creating new Dai with increasing collateral value or repaying borrowed Dai. 💵 Forced liquidation occurs if a position falls below the safe ratio, seizing collateral to maintain safe parameters.
Got curious about DAI breakdown? Check Here and have a nice DAI! Show Less
