CDP that issued $6.9m worth of DAI is about to get liquidated
– 6,912,500 DAI issued
– 72,286 PETH (pooled ETH) is the collateral
– liquidation price is at $139.20
– until 3 days ago, he has been "LOCK"ing more PETH
– recently, he has been "WIPE"ing his outstanding DAI
observation: until 3 days ago, he has been confidently adding more ETH as collateral. it seems that he has run out of ETH and can no longer add collateral, so he is now reducing his DAI issued.
so basically, he has no more firepower to buy/secure more ETH to defend his CDP and is winding down his DAI debt as the price of ETH continues to fall since it's the only thing that he can do.
interesting to note, the price of DAI has been remarkably price stable at ~$1.
however, my issue with the MakerDAO system has never been about price stability, but scalability of supply to meet the demand of stablecoins. evidently the demand of stablecoins are in the trillions (as demonstrated by Tether), yet MakerDAO would be having to lock up a significant portion of ETH (already 1% i believe) to have DAI supply anywhere near those levels.
i don't believe multi-collateral will help much since (1) when and how many tokenized assets are there available to be collateralized and (2) adding in centrally issued collateral to back a decentralized stablecoin is a strange structure to me. that arrangement is still dependent on a centralized issuer honouring the redeemability / convertibility of the digital asset being collateralized.
just sharing my thoughts, feel free to discuss.