Currently Celsius holds 18.000 BTC and 278 millions $ of DAI debt that is about to get liquidated by the maker protocol when bitcoin hits 22.584$ because of the leverage.
This will cause another mass selling and devaluation which in turn will bring the collateral of DAI to be worth less than the outstanding DAI value.
When that happens people will sell DAI to avoid being be left empty handed like with UST forcing DAI's algorithms to liquidate more and further devalue the collateral basket of cryptos that back DAI.
A depegged DAI can't be easily fixed and it will likely spell the end for DAI.
I want to know how to short DAI as this might happen today or tomorrow. If you have some suggestions please let me know.
take out a loan in dai using whatever collateral buy usdc with your dai wait for dai to crash buy back the amount of dai needed to repay the loan using a mere fraction of your usdc
would this work?
Colton Powell
wait nevermind as the value of dai drops the loan will pay itself off automatically. i don't do defi so i dunno i'm asking if this makes sense.
Matthew Brooks
the liquidation is what prevents DAI from depegging
Nicholas Barnes
What's the current marked to market value of the DAI collateral?
When it goes underwater and there are no takers for DAI yield farming it's all over.
Dominic Clark
I’ll do it. I’ll buy everyone’s debt. I’ll save crypto. Just tell me how. For my village.
Logan Wilson
daistats.com/#/ still 130% collat. ratio, half of it is USDC
Leo Price
This will be the mother of all catapults!!
Wyatt Ward
Do we just go cash gang until defi shit all blows up and finishes dumping?
Josiah Morris
Consider the other USDC linked assets, almost 75% of it is USDC and savings rate is 0.1% ... what's the fucking point of this thing?
Connor Thomas
it could be worse tether looks like its encountering price stability difficulties
Would that work as a short? Not so familiar with binance.
Zachary Foster
It might be possible on other exchanges too, dunno. Do your own research how to bankrupt yourself :)
Borrowing is the essence of shorting, you borrow what you short and buy something else. Then when the price goes down, you reverse the trade and return the loan with interest.
Of course there's collateral involved too, so you'd preferably want to do it on whatever exchange you already have a major account with (and pray they don't go bankrupt before you can cash out).
Hunter Scott
The question is if i need to return the coin i borrowed or the equivalent amount in USD.
Josiah Jenkins
bump, but sounds like trying to buy ust at 90 cents hoping it goes back to a dollar, but i very likely am mis understanding what this user is saying
