Rune Christensen, one of the co-founders of the company that created and developed DAI, a decentralized stablecoin, has singled out two competitors. Christensen expressed his dissatisfaction with the UST and MIM'reply men' on Twitter, and expressed his thoughts on the two relatively new <a href="https://www.cryptoknowmics.com/news/paypal-says-it-is-exploring-a-stablecoin/">stablecoins</a>, comparing them to DAI.

Christensen stated:

<em>“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.”</em>

DAI, according to Christensen, was developed for resilience, and the project is the most trustworthy when it comes to smart contracts and collateral security. In December, however, UST flipped DAI as the most valuable stablecoin project. Despite this, DAI is the second most valuable decentralized stablecoin project in terms of market valuation.
<h2><strong>Engineered Inversely</strong></h2>
While MIM, UST, and DAI are all decentralized stablecoins, they are all built-in distinct ways. UST is a pure algorithmic stablecoin whose peg is maintained through arbitrage incentives, unlike DAI and MIM, which are collateralized stablecoins with other assets guaranteeing their value in the event of a selloff.

The fact that part of the cash supporting the assets is made up of centralized stablecoins has led to criticism of these collateralized stablecoins. According to a chart provided by Christensen, USDC is used to collateralize 37.4 percent of DAI earned. However, Christensen pointed out that MIM had issues in this area as well, implying that it might rely on centralized stablecoins for a larger portion of its backing.

Last year, the stablecoin industry exploded, with USDT, the market's largest stablecoin, rising from a $20 billion market value at the start of 2020 to a near $80 billion market cap by 2021. However, decentralized alternatives expanded even faster, with UST's market cap increasing by more than 50 times. MIM, on the other hand, has amassed a $4.6 billion market value since its launch in September.

Maker Co-Founder Noises UST and MIM 'Solid Ponzis' That Will Turn to Nothing

Christensen expressed his dissatisfaction with the UST and MIM'reply men' on Twitter, and expressed his thoughts on the two relatively new stablecoins, comparing them to DAI.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Maker Co-Founder Noises UST and MIM 'Solid Ponzis' That Will Turn to Nothing

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