Is DAI Losing Its Peg?

dai peg march 2019 768x392

While eth’s price fell for much of last year, forced closure of Collateralized Debt Positions (CDPs) counter-balanced dai sell-pressure. Now that eth’s price is rising, questions have been raised on whether it can keep the peg. It hasn’t quite been able to do so for some time, at points falling to as low as $0.96 on Coinmarketcap which somewhat distorts the average by the inclusion of exchanges with fake volumes. So a new tool is out by MakerDAO devs (pictured above). Last 50 days of $DAI vs $USD from several DEXs from Lev at @MakerDAO Spikes tend to correlate to CDP liquidations as keepers rush to get $DAI and cover debt. The big story is $DAI is consistently trading lower than 1 $USD. Seems like a stability fee hike is needed. pic.twitter.com/7xLrYT8inr — Kenny Rowe (@kennyrowe) February 21, 2019 There were two interest rate increases of 0.5% last month. That…

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