CovOps
Location : Ether-Sphere Job/hobbies : Irrationality Exterminator Humor : Über Serious
| Subject: Clusterfuck: ‘A Loan Shark Situation’: MakerDAO Is Leaving Crypto Borrowers With Rising Bills Sun May 12, 2019 6:32 pm | |
| The Takeaway
An ethereum protocol for programmatic lending, MakerDAO emerged as a clear market leader in part for its rock-bottom interest rates of 0.5 percent. But the code behind MakerDAO requires interest rates to do more than extract business from borrowers, it’s a technological necessity for keeping its DAI stablecoin worth $1. With interest rates rising to 19.5 percent, and DAI still worth below $1, some early borrowers are angry, feeling as though they were misled. Describing the project’s marketing tactics as akin to digital “loan sharks,” they argue their experience with decentralized finance has been worse than with traditional banking.
https://www.coindesk.com/a-loan-shark-situation-makerdao-is-leaving-crypto-borrowers-with-rising-bills-and-theyre-crying-foul
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