Assess Stablecoin suitability (Dai, USDC, Paxos etc) as a fundraising medium and smart-contract compatibility

enabledao / enable

Stablecoin loans for borderless peer-to-peer credit

https://www.enable.credit

MIT License

26 stars 8 forks source link

Closed onggunhao closed 5 years ago

onggunhao commented 5 years ago

Dai might be too volatile and high stability fees might result in very high interest rates (currently 14.5%). For 150% collateralized loans on Dharma, the interest rate is 11%.
Dai currently only trades at ~0.98 : 1 USD. The exchange rate still fluctuating and there is a chance that it changes in the future, leaving Ines susceptible to forex risk.
Fiat-based stablecoins might have significantly lower interest rates.

tspoff commented 5 years ago

While Dai is really cool, I'd be partial to the stablecoins from regulated financial institutions in this case (which I believe the other two are)

The fluctuation potential in Dai could be disastrous for a long term loan.