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A comment on Crypto Coin Tether Defies Logic on Kraken’s Market, Raising Red Flags. Parent comment

Re:Crypto Coin Tether Defies Logic on Kraken’s Market, Raisi... by tomjakubowski on Friday June 29, 2018 @04:48PM (#17427755)
> Eventually they plan to move to a version that is tied to some CPI (basket of goods) rather than one currency.

Is the idea that someone will guarantee me some basket of consumer goods (or some amount of another currency which can readily be exchanged for said basket) if I give them 1 DAI?

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Re:Crypto Coin Tether Defies Logic on Kraken’s Market, Raisi... by rthomas6 on Friday June 29, 2018 @05:28PM (#17427979)
Not really. It's just a way of measuring value more removed from any one nation's currency. You take the price, in DAI, of a bunch of historically stable priced goods. Bread, tires, shoes, etc. Measure the averaged normalized variance in price over time for these goods in DAI. Then tune the economic incentives to make those variances stay at as close to zero as possible.

https://en.wikipedia.org/wiki/Consumer_price_index

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