24 karma · joined October 7, 2018
In Tether's case they are backed by almost no USD and mostly short term loans to undisclosed entities... I do not think Tether is legit, and USDC is questionable as well. Without third party auditing it's hard to trust any of this stuff.
My original response was trying to highlight how DAI is mostly made up of USDC (at this time), and USDC is a direct competitor to USDT. So in what world would it make sense for USDC to bail out USDT in the event USDT is revealed as a total fraud.
I guess an important distinction is DAI is not 100% backed by USDC, but it is backed >50% as of this time: https://share.streamlit.io/tadzz/maker_dai_collateralization...
I do agree that crypto has been through some issues in the past and has recovered, and I'm sure in the long run it will recover from a Tether collapse as well. In the short term the market will take a significant hit, and many of the exchanges that deal heavily in USDT could collapse because of a lack of liquidity.
EDIT: DAI is backed by USDC not USDT, terribly typo :( https://share.streamlit.io/tadzz/maker_dai_collateralization...
I don't know if this specific auction is listed, but on the whole the auctions are generally the same. There are two types of Auctions: Simultaneous Multi Round (SMR) and Clock. The rules vary between those two Auctions significantly. SMR auctions are an older model, and clock auctions are more common in recent years, though SMR auctions are not completely dead.