Rune Christensen, one of the co-founders of Maker, the organization behind the creation and development of the DAI decentralized stablecoin, has called out two competitors.
Look, UST and MIM are solid ponzis and I respect that. You can make good money off them for sure. But they are not built for resilience and they are going to 0 once the market turns for real.Christensen elaborated by indicating that DAI was built for resilience while noting that the project is the most trustable when it comes to smart contracts and collateral security. However, UST
DAI as the most valuable stablecoin project back in December. Still, DAI is ranked second amongst decentralized stablecoin projects by market capitalization.While MIM, UST, and DAI are all decentralized stablecoins in name, each one of them is engineered differently. While DAI and MIM are collateralized stablecoins — meaning that there are other assets backing their value in case of a selloff — UST is a pure algorithmic stablecoin, whose peg is maintained through arbitrage incentives.
by Christensen, 37.4% of DAI generated is collateralized with USDC. However, Christensen pointed out that MIM also had problems in this regard, hinting at the possibility of it having a higher percentage of its backing based on centralized stablecoins.