MakerDao This Coin Will Explode 💥 You Rich? Top Crypto Coin Next Bull Run

heyyo good afternoon viewers of YouTube my name is Tyler and I would like to welcome you to the channel that's fighting to make it through this bear winter by bringing you a little heat to melt that goddamn snow well let us get all warm and fuzzy because it's time for Chico crypto yesterday we took a little look into teather and how it could possibly be cryptocurrencies version of the Fed printing USD tease out of thin air to jack up the price of Bitcoin during 2017 and possibly printing more to this day to stop a total collapse of the market due to their manipulative greed I mentioned other stable coins which are fully backed by dollars like tether is supposed to be and fully audited unlike tether these coins are true USD USD coin and pack so standard although there is one stable coin that is noticeably different that I mentioned and is the topic for today's discussion that stable coin is dye which is issued through smart contracts and governed by the token maker so today I would like to look at the case for maker and die as the future of stable coins while at the same time examining the ultimate risks wisss system the reason maker intrigues me so much is its inherent decentralized nature current versions of stable coins including all those mentioned above are all supposed to hold US dollars in bank accounts and then issue tokens on the blockchain that are backed by those dollars basically you can call these an IOU coin they owe you a dollar if you redeem one of their stable tokens but if those bank accounts are ever to be frozen or if the accountants of the stable coin system defraud token holders these stable coins do become a true IOU as they can only pay the token holders back with whatever dollars they have less or if they eventually get the bank accounts back these systems are relying on the current banking and legal systems to maintain their crypto tokens and it creates an unreliable middleman into blockchain systems blockchain was supposed to erase the middleman not create another one to begin we need to understand how maker works to fully explain this it would take all day and I have went into more detail on how it works in a video posted a couple months ago called the cerium Triforce if you want a deeper learning experience click the link above so there is no easy way to explain maker and dive but I will try to make it as simple as possible the stable coin die equals $1 maker keeps die at $1 using a system of collateral and price feeds from aetherium if you want to get some die you would send a certain amount of aetherium to a maker smart contract called a collateralized debt position or CDP and in return you would get a certain amount of die back based on collateralization ratio so say the collateral ratio is 200 percent if you sent over a hundred and etherium you would get 50 die back if you want to get back that etherium you sent over for example a year later you would need to send over 50 die plus any interest this interest is what helps keep die stable the interest APR was 1.5% has just been raised recently to 3.5% in a vote with the governance token maker these interest fees are exclusively paid in maker and when paid part of the fee is burned reducing the supply of maker yeah at the same time helping keep die stable in laymen terms what a borrow did was kind of similar to getting a mortgage you borrowed died using or aetherium as collateral just like borrowing money using your house as collateral only when you pay back your debt with the interest you would get back your collateral aetherium or a house the borrower then can do anything with the die they got margin trade loan the die out buy more etherium hopes a profit and eventually take out loans on other assets like stocks precious metals and more now since these debt positions are based on aetherium which is volatile there has to be some sort of protections for the system and stability of died to $1 if a theorem goes up there isn't much to address as the system becomes more collateralized and die in turn become stronger but if aetherium goes down there could be problems especially if the value of aetherium held is worth less than the die it's supposed to be backing maker combats this by liquidating CDP's and auctioning off the aether before the value of the aether is less than the amount of the die backing it this means the borrower's need to keep an eye on their CDP's the final failsafe falls on the governance token holders of maker maker token holders have governance over the smart contracts in the system and in return they are rewarded with feeds in the system like interest on borrowing died in CDP's however there is a catch maker holders function as the buyers of last resort should the collateral in the system not be enough to cover the amount of die in existence maker is actually created and sold on the open market in order to raise the additional collateral this provides strong incentive for maker holders to responsibly regulate the parameters like the collateralization ratio an interest on the CDP's as ultimately it could be their money on the line should the system fail not the holders of the stable coin die so what is the case for maker as it stands it has a healthy market cap of over 650 million dollars and a tiny circulating supply of just 1 million maker tokens looking at the price chart it's one of the most bullish charts throughout the bear market with obvious decoupling from Bitcoin given the gap between price and USD and the price and Bitcoin die the stable coin has a market cap of over 88 million which means over 88 million died are issued and in circulation and the volume traded with the stable coin is over 37 million dollars in a short amount of time just assume in the future maker rivals tether and facilitates the creation of 1 billion died with the interest rate averaging just 1% it has a higher interest rate right now 3.5% but votes can happen to lower it or raise it based on market conditions this would mean there be ten million dollars worth of maker burned every year that is 1.5 percent of the market cap of maker right now here is a nice little tidbit the market for asset back loans in the US is currently over eight hundred billion dollars and worldwide it exceeds one trillion dollars eventually maker is going to move into CDP's with other crypto assets like Bitcoin but in the future it will be possible to collateralize real-world assets like real estate stocks and bonds how much of this one trillion dollar market could make her capture let's say 50 billion with the average interest rate of just 1% this would mean five hundred million dollars in maker getting burned each year which is almost its entire market cap so what is the case against die well since CDP's are governed by smart contracts a bug in the smart contract could potentially lead to losses in the hundreds of millions of dollars this is one of the largest criticisms coming from people and for good cause aetherium has seen its share of smart contract bugs like the infamous dow hack in which hackers stole over 50 million dollars by finding the exploit but this was due to sloppy auditing by the creators and could have been prevented if audited properly auditing processes have matured since then and companies are taking it very seriously but there is always a possibility another major criticism is to its long term stabilization viability critics say that stabilization mechanisms provided by maker provides some stability but none of the mechanisms are viable long term borrowers of dye through CDP's may stabilize a price upwards and downwards to some degree but the mechanisms depend on the assumptions of the price moving in the direction of the stability that is needed beforehand which can produce fluctuating negative forces like mention the final fail safe to keep die stable is the creation of maker in the sale of it on the open market to increase the collateral but is this scalable if the option begins to be used frequently finally in terms of scalable ability if daizen such demand that it rivals tether is it likely that guy can growed that large to serve that demand will there be enough borrowers willing to open CDP's with collateral to match the demand for the stable coin I will let you guys make your own decisions as I am no financial adviser but I hope this information helped you understand some of the positives and negatives of this concept there is no doubt that maker is a risk but I personally am a fan of the fully decentralized aspects of the coin and it's a risk I personally have chosen to take maker is part of my portfolio will it be a part of yours cheers viewers I'll see you next time you

27 thoughts on “MakerDao This Coin Will Explode 💥 You Rich? Top Crypto Coin Next Bull Run”

  1. ⏰ Time Stamps ⏰

    00:08 Introduction: The Rise of Stablecoins

    00:56 The Case For MakerDAO & Dai Stablecoin

    01:25 Current Stable Coins Rely On Banks & Centralized Legal System

    02:16 MakerDao Is Different: How The System Works

    03:43 MakerDao In Layman's Terms

    04:01 What A Borrower Can Do With The Dai They Borrow Through CDPs

    04:15 How Dai Is Kept Stable To 1 Dollar?

    05:47 Why Maker Could Make You Rich: The Case

    07:30 The Case Against MakerDao? The Risks

    09:11 Conclusion

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  2. Reading thru comments i can see there are still way to many moonboys in space…imo we need to drop to about 2k btc to wash out these uninformed investors….they really need to make an effort to understand crypto finance before investing….sad they want you to do all of the work for them…..they don't understand diff between decentralized stable coin and other centralized stable coin….hopefully someone will liquidate the Tether "bank account" causing Tether to fold and incentivize this crowd to learn!!!

  3. Use my referral code … … to sign up for the @nashsocial giveaway! #TrustYourselves … …

  4. Also check Platon Finance on CMC, 21m total supply about $0.17 now, just won award for best fintech product Zug summit 2019

  5. great content , thank you for explaining everything . also nice to see different backrounds in each of your videos i don't get out much lol so i get to see different areas . thank you for all your work

  6. I have to say, ive never seen a better crypto shiller than chico crypto, so at least you're #1 at something chico 😁

  7. did u look into the tron dapp p3t network ? it's on dappradar . i get money every minut (3.33% daily) until (or if) the contract runs out of funds

  8. What do you think about the 8 hour BINANCE SYSTEM UPGRADE? Is it going to come back online, or will it be gone forever!!!

  9. Wow you are a complete dumb ass have you not read it.
    Let me school u it's a system built off of debt and the keep the stablecoin where he needs to be they take it from maker holders and maker holds are the governor of the hole ecosystem they can raise transaction fees so like raising taxes and like now it only be a few that controls the hole ecosystem. So now let's play out what's happens if maker is adopted so you think any government going give up power that they have left to people they don't know lol they want to buy 51% of maker then you control all the money Mmmmmm……. just like it's now right Rockefeller? ??
    And only 1millon controls it so how is it desensitized when 1 million people have control of it you are the complete worse people to be talking about crypto the nice parts is hopefully new people coming into the space watch more then 10 video of yours and they see how you are a shit talker and don't have any actual knowledge at all

    You buy all the maker up buddy I'll stick with Neo you dump with others

  10. At the end of this year, Ethereum and all the erc20 tokens will be to DGB what Litecoin is to BTC. A testnet. Ethereum cant scale enough for mass adoption, is expensive, and is not considered the safest blockchain. Are you gonna look for smartcontracts and stablecoins in the future through ethereum ? I dont think so… there will be better options. I have nothing against ethereum ! But when it comes to put an investment you are looking for something safe.

  11. Great video Tyler. The system partially reminds me of NuBits / NuShares which got yanked away from $1.00 when too many people went back into Bitcoin. Once it got yanked to $0.96 people lost confidence in the system. It might eventually recover again but most people have turned away from it and it is sitting at $0.06. BitUSD, and Steem Backed Dollars had issues maintaining the peg as well. I think the next bull market I'm going to try to utilize both the decentralized methods and the bank backed ones like TrueUSD ….etc and then if one fails and I have my funds spread between 5 coins I will be better off than having my eggs in one basket. Maker / DAI is interesting. It will be interesting to see the Stable coins come out on EOS as well.

  12. Great vid chico! i've heard some bright people with integrity have really good things to say about this project. i guess birds of a feather….

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