DAI Tops $70 Million, ~2 Million ETH Collateralized

While ethereum’s price recently dropped by 25% from $160 to $120, dai didn’t move much for the first time since it launched a year ago. The algorithmically dollar pegged token usually sees a decrease in its market cap (pictured above) in line with a decrease in eth’s price, but not this time. That perhaps suggests the collateralizers – who perhaps can better be called the eth depositors – are becoming more sophisticated. As a very new thing launched at the height of the December 2017 euphoria, ethereans necessarily needed some time to get their head around this unique collateralization system. Is it just a margin, is it a loan, is it a hedging tool, is it a bank? Where are the arbitrage points? Can I profit from just the peth/weth difference? Is it safe? What is its real use? Some ethereans say people just lock eth, get dai, buy more…

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