MakerDAO Governance & Risk Call: Dai volatility returns with renewed bullishness in Ether market

Quick Take

  • Dai price dipped below its target peg for the first time in months, although the small drop relative to Ether price appreciation suggests significant maturity in the Dai markets since Q1
  • A paper from PhD candidate Ariah Klages-Mundt highlights several risks associated with the MakerDAO system, including liquidity crisis in the event of deleveraging spirals and ‘short squeeze’-like attacks from miners, the latter potentially impacting the Ethereum network’s consensus stability


Following several months of impressive participation rates, turnout for the weekly MakerDAO Governance & Risk call has reached a tepid state: today’s gathering commenced with just 16 stakeholders present, before later reaching a high of 23.

As discussed in last week’s report, the relative significance of high voter turnout on these weekly governance calls is rather nuanced, as is participation in the formal voting process itself.