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The founder of the famous darknet marketplace Silk Road Ross Ulbricht, while serving a life sentence in an Arizona prison, published an article with suggestions to improve the Maker decentralized finance protocol.
Ulbricht focused on the events of March, when a sharp drop in Ethereum prices led to a massive liquidation of debt positions and other problems, and Maker had to conduct a series of auctions to sell MKR management tokens to compensate for the deficit.
The creator of Silk Road called Maker a “cool concept” and shared some ideas that “will help prevent this kind of crisis.”
The first thing he offers is to organize the system so that Dai holders pay to the owners of the vaults where Ethereum is blocked when creating a stablecoin. One approach to the implementation of this plan is to reduce the interest rate on deposits in Dai to zero, and the stabilization fee to negative values.
“This should be done so that Dai simply disappears at a rate of 1% per year, releasing much more collateral than otherwise,” Ulbricht shared his thoughts.
Another approach involves the independent determination of the size of fees by the owners of the repositories, which would create a competitive environment.
“The best solution would be to create a system where storage owners set their own rates and compete among themselves for interest income from Dai holders. In this case, the lowest bets would win. This would keep the values low as a whole. However, with a serious lack of collateral, rates will automatically increase due to market forces, encouraging the flow of new collateral and reducing incentives for Dai to accumulate. ”
In conclusion, Ulbricht noted that Maker will inevitably face a new crisis, “if he does not solve fundamental problems.”
Recall that recently the Compound DeFi protocol bypassed Maker in terms of capitalization and the volume of blocked assets.
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