At the time of this writing, DAI price has been hovering around 1 USD for about 3 months, but in the last few weeks we’ve seen a lot of trades occurring at 1–3% above the peg. In our view, upward pressure on DAI price is due to number of reasons, the main one being that DAI demand has picked up while sell pressure from leverage traders has lost some steam.

All the charts below can be accessed at

Image for post
Image for post

DAI demand is extremely hard to estimate. It is measured not only by looking at increased bids for DAI on exchanges, but also by the amount of DAI that is passively held by people. Namely, passive holdings work as short term sinks, effectively taking DAI out of circulation and creating upside price pressure. …

Currently, there is a lot of debate over whether the stability fee as a policy rate for borrowing DAI and backing it with ETH properly represents market dynamics within the MKR ecosystem. MKR works in such a way that the stability fee is voted on, not defined by markets — something like what central banks do, but in a decentralized fashion.

I believe the best way to assign an interest rate to any asset is to look at what the market is signalling. …

When I used to help Iconomi with building their fund management platform I always wondered if decentralized asset management on the Ethereum blockchain would ever really work. I also wondered how effective it would have to be to attract users, particularly after seeing how complicated things were when we were building the platform on a centralised infrastructure.

Over the last two years, I have kept my eye on promising decentralised platforms such as Melonport and Prism by Shapeshift.

Melonport looked like there was more marketing than actual execution and two years since their ICO there is still no product on the mainnet, despite their secondary ICO. Although they are supposed to go live in February 2019, I have since lost a lot of faith for their product. This is primarily because they were not able to deliver a product until now despite an abundance of capital raised. I also get distracted by teams who are more into marketing and attending conferences than building things. There is also news the company is shutting down and leaving protocol development to the community, potentially due to most of the ICO money being spent, their non-compliant fundraise or a shakeup in the founding team. …


Primoz Kordez

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store