I’m not sure the appropriate section of the forum to post this but I’m working on my investment thesis and I’m trying to get a better understanding.
If I’m going to draw debt on my ETH, why would I choose Maker over Compound or Aave? Maker has the lowest liquidation threshold and does not have the lowest interest rate. I understand interest rates will normalize on Compound with time, but let’s say we remove interest rate from the discussion. The collateralization factor is very important. No rational actor would draw debt close to their liquidation point to begin with, but the larger the buffer the better. Maker is non-competitive in that sense.
I understand stability of the protocol is important, but trust is growing on Compound and Aave and I believe they are safe enough. Even in a March 12 situation I imagine they’d be okay (but maybe not).
Maker being the trusted protocol for RWA would be a great reason to be conservative. But how is Maker going to compete in the cryptoasset realm? Where is the competitive advantage going to come from in the future? I don’t even fully understand why TVL is growing so rapidly to begin with. Clearly the yields for DAI are going to be on par with other stablecoins in the future, so that isn’t something to rely on.
Just trying to gain a better understanding of DAI growth and the vision for the future.