News for hackers. Stuff that matters.

A comment on MakerDAO’s “DAI” stablecoin is breaking, as predicted. Parent comment

Re:MakerDAO’s “DAI” stablecoin is breaking, as predicted by mtgx on Saturday January 13, 2018 @07:30PM (#16142215)
Wait, tether is fractional now? Wasn't one of their big promises that Tether is always backed up 1:1 by the dollar?
[ Parent | on HN ]
Re:MakerDAO’s “DAI” stablecoin is breaking, as predicted by alphast0rm on Saturday January 13, 2018 @07:43PM (#16142256)
I believe you are correct that it's not fractional, their website claims "100% Backed - Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD." [1]

The whitepaper abstract also states "issued tokens are fully backed and reserved at all times." [2]

[1] https://tether.to/

[2] https://tether.to/wp-content/uploads/2016/06/TetherWhitePape...

[ Parent | on HN ]
Re:MakerDAO’s “DAI” stablecoin is breaking, as predicted by MicahZoltu on Saturday January 13, 2018 @08:43PM (#16142382)
Tether claims to be full reserve. The contention people have is that there is little to know proof that they are _actually_ full reserve. Also, there is risk in Tether that some government will seize all of their assets (there is lots of precedence for this).
[ Parent | on HN ]