Connect with us

Altcoins

‘MakerDAO will revive traditional financial market’s non functional debt market’

Arijit Sarkar

Published

on

'MakerDAO will revive traditional financial market's non functional debt market'
Source: Pixabay

MakerDAO has been one of the most successful Ethereum-based crypto ecosystem, which was established with the motive of providing stability to the unstable cryptoverse. Gregory Di Prisco, the company’s Head of Business Development recently featured in an interview to reiterate his support for the technology. He highlighted how MakerDAO’s in-house crypto, Dai, follows the issuance pattern similar to fiat wherein the “commercial banks create new money against assets like your house. He highlighted,

“The money that they printed is not a derivative of your house. It’s just technically collateralized by your house. It’s the exact same concept with Maker but it’s really a paradigm shift in terms of the creation process.”

Additionally, the entrepreneur further differentiated between commercial banking with MakerDAO’s business model by contrasting traditional loan system that exceeds collateralization ratio by over 100%, which ultimately results in a nonfunctional debt market. He added,

“If you are gonna make the comparison to commercial banking, there is attractional reserve element to the banking system. On the other hand, with MakerDAO, you are going to have a system where there are many, many multiples of diverse collateral.”

Arijit is a full-time journalist at AMBCrypto, who focuses on the XRP and Ethereum ecosystem. Leveraging over three years of experience in media and Majoring in Computer Science, he covers the technical developments in the crypto ecosystem

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *