Submit Essay

Once you submit your essay, you can no longer edit it.

# Will the Dai stablecoin maintain a value of roughly $1 until July 2023? ### Question One of the biggest problems with cryptocurrencies right now is their volatility. So-called 'stablecoins' aim to solve this by maintaining a stable price, usually compared to an asset like the US Dollar. The currency Dai, created by the organisation MakerDAO and running on the Ethereum blockchain, is a popular stablecoin that tries to always be worth$1. Instead of being backed by a reserve of dollars, Dai can be created by anyone by locking up some ether (or other cryptocurrencies) as collateral for a loan in Dai. The ether is only released when the user pays back their loan, plus a Stability Fee. Dai holders can also earn the Dai Savings Rate which is funded by the fees. The Stability Fee and Dai Savings Rate are adjusted to keep the value of Dai at $1. Its predecessor Sai (formerly called Dai) has successfully kept a stable price throughout 2018 and (as of December 2019) still maintains it, despite volatility in the price of ether. The new version, Multi-Collateral Dai, was released in November 2019. Will Multi-Collateral Dai (or a future version of it) be worth around$1 consistently up to July 2023?

This resolves negatively if either Dai is worth over $1.10 continuously for any 2 week period or if it is worth less than$0.90 continuously for any 2 week period before 12:00 AM GMT on the 15th July 2023, according to a website like Coinmarketcap.

If MakerDAO has an Emergency Shutdown, it also resolves negatively.

It resolves positively otherwise.

If a newer version is released, then this question will be about the new version if and only if there is a direct way to exchange Dai for the new coin at a 1:1 rate (which was the case when Sai was upgraded to Multi-Collateral Dai).

### Prediction

Note: this question resolved before its original close time. All of your predictions came after the resolution, so you did not gain (or lose) any points for it.

Note: this question resolved before its original close time. You earned points up until the question resolution, but not afterwards.

Current points depend on your prediction, the community's prediction, and the result. Your total earned points are averaged over the lifetime of the question, so predict early to get as many points as possible! See the FAQ.