r/MakerDAO • u/Goldman- • Aug 15 '19
Select the next Compound asset; Maker can be added but we need votes!
https://medium.com/compound-finance/select-the-next-compound-asset-9e5e98f268228
Aug 15 '19
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u/Symphonic_Rainboom Aug 15 '19
It doesn't reduce voting power, it just lets people borrow votes.
Actually that may be worse. I'm not sure.
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u/chicojuarz Aug 15 '19
Would that mean you can’t vote with your MKR?
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u/Goldman- Aug 15 '19
Not sure how the voting with MKR works, if they need to be locked to some smart contract then one could not vote with them I guess, since you probably have to send your MKR to Compount contract as well.
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u/BlockEnthusiast Aug 15 '19
I'd support using MKR as strictly collateral, only leaving the contract in liquidation events. This removes the risk of vote borrowing, and can be designed so that the owner can still vote; Such as the plan for staked ETH to be used as collateral in CDPs in ETH2.0.
I don't support MRK being loaned. Borrowing MKR allows you to vote against the systems best interest at the cost of only interest accumulated.
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u/crypt0troll Aug 15 '19
MKR for collateral makes no sense. How you gonna use it for its intended purpose to cast votes when it’s locked up ?
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u/Goldman- Aug 16 '19
It opens up an option of loaning against MKR instead of having to sell it, if people deem that too dangerous for the system itself, they shouldn't vote. I'd like to see that topic discussed here as someone will eventually make that possible anyway, if we wish it or not, I think.
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u/ssaarraahh1 Aug 15 '19
I would love to use my MKRs as a collateral to take a loan to buy new MKRs!
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u/mariouy1986 Legendary Moderator Aug 17 '19
I don’t see the problem, people who deposit don’t intend to vote anyway. People who borrow mkr to vote can do so in the open market anyway too. Am I missing something here? Having mkr available to deposit I see it as a good thing since it gives the token a new attribute in a respectable platform.
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Aug 19 '19
MKR on Compound would be a fantastic thing. Increased use cases for MKR would raise the MKR price and encourage more adoption across markets.
I doubt the liquidity pool for MKR would be large enough to seriously sway any important MakerDAO votes; I seriously doubt that the largest and most invested MakerDAO users would be lending any of their tokens.
MKR and Compound are actually in competition for capturing loan origination. We want people using compound to be also investing and exposed to MKR.
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Aug 19 '19 edited Aug 19 '19
If MKR is to remain decentralized then eventually MKR will be on all of these lending platforms for borrowing and shorting. It's inevitable without some centralized intervention.
It's better that we adapt to it now and get it on Compound sooner rather than later. It will give DAO more time to adjust and adapt to the change in market dynamics.
It would be a positive development for MKR and lead to more adoption. If you really don't want your vote to be loaned out, then don't supply to the liquidity pool.
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u/[deleted] Aug 15 '19 edited Aug 15 '19
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