[Informal Poll] How much DAI is needed to get the peg back to 1:1 (November 2020)

As a follow-on to the previous informal-poll(s) and general discussion surrounding the peg and to get an idea of why intense action may be justified, please see the below informal poll (not a signal request).

September 2020 Poll

How much DAI needs to be minted in order to get DAI back to $1.00 (as measured with a 14d trailing average)?

  • 1MM - 24MM
  • 25MM - 49MM
  • 50MM -149MM
  • 150MM - 299MM
  • 300MM - 499MM
  • 500MM - 999MM
  • 1Bn - 1.499Bn
  • 1.5Bn - 2Bn
  • more

0 voters

similar to the above

Once the above 1:1 is achieved, how much further should we internationally overshoot before we start to use the DSR to cause the demand (instead of tapping the breaks on DAI issuance)?

  • $1.00000
  • $0.99999
  • $0.99990
  • $0.99900
  • $0.99000
  • $0.98000
  • $0.95000

0 voters

This informal poll will run for a week.

2 Likes

Would like to see $0.995 in the second vote as that’s what I’d like to see

next time… it will be included…

Contrary to the usual polling guidelines, I think it’s funny that we can’t vote for more than one choice. Kudos to the poll designer. :grin:

2 Likes

Wow thanks for this poll.

I find it amazing that I blindly voted for the two values that are currently receiving most votes!

  1. 500-999
  2. 0.99

Feels good to know that the community thinks more or less like me. :slight_smile:

1 Like

I don’t see any purpose with these polls. The problem is not in “how much” and we’re not doing anything to encourage minting DAI anyway (like 0% or negative fees).

We will never see $1.00 DAI again with this version of DAI unless:

  • something really bad happens to DAI
    or
  • DAI becomes backed by USDC to the extent that it is basically USDC.

I especially like it since it forces me to choose between 0.99999 and 1.00.

1 Like

What is the game theory that makes it preferable for MKR holders to issue DSR rather than cranking up the stability fee and earning protocol revenue?

the risk didn’t change… therefore the risk premium shouldn’t change… the DSR should mop up the excess supply

if the community searches to extract maximum revenue instead of optimizing for risk, the whole project will be displaced, just a question of when. The borrowers (users) are not captive. they can get a line somewhere else.

A couple of things although I’m not sure that either have anything to do with game theory

when people borrow money they don’t like their rates going up.
DSR basically allows MKR holders to incentivize people to find DAI and take it off the market.

I’d look at the later as a sort of marketing expense. The more people you can get interested in holding dai the more loans you hopefully can make.

1 Like

I would like to add that various entities ranging from exchanges to legacy applications used by millions integrated DSR… But don’t get any benefit right now because it’s 0%.

So it not only increases potential users but also allows Dai to be more competitive among stablecoin.

4 Likes

100%. I expect the DSR to be far more potent than the first round of usage and ever more as as integrations expand.

2 Likes

This informal poll has now closed. Below are the weighted average results:

How much DAI needs to be minted in order to get DAI back to $1.00?

  • 761.375MM DAI

Once the above 1:1 is achieved, how much further should intentionally overshoot before we start to use the DSR to cause the demand (instead of tapping the breaks on DAI issuance)?

  • 0.9947 DAI
3 Likes

Between yield generating assets and RWA we will get there soon

1 Like

I also think that we might get there soon, but it will be because DAI is more and more similar to USDC, so no need for a premium anymore. Right now DAI is very dependent on USDC which dictates its price and its income (we are not free to change the SF anymore without being undercollateralized).

If the yield generating assets+ETH+RWA become more popular collateral than USDC, I might change my mind.