high IQ DMG thread

[Anonymous No.20085918]

pajeets, shillers and fudders BTFO.

I'm balls deep in this short-medium term as I'm certain that the hype surrounding the potential of this coin will send it far. But that said I'd like to have an intelligent discussion about where things might go wrong with this project long term. Things like:

What are the risks involved with buying mTokens? is it really that easy to earn that much massive interest on my ETH stack?

What are the chances this will be a security, and what would the implications be for its success?

how big really is the market that this is trying to tap into?

etc.

[Anonymous No.20085959]

>>20085918
>how big really is the market that this is trying to tap into?
no idea about the loans market (how big are banks?) but there are trillions of dollars invested into negative yield holdings. providing a low risk opportunity for getting higher yields could ber very interesting to LOTS of people. And that at the very least could drive institutional investment into DMG which will allow them to buy more assets, which will attract more investors and so on and so forth.
so really however big the loans market it, this has the potential take a large % of it

[Anonymous No.20085968]

>>20085918
No way a lien is not security, it's literally called security interest

[Anonymous No.20085994]

>>20085968
so they say they have lawyers working on navigating that, but what does it mean if they do ultimately get classified as a security.
would it then require KYC to lend?

[Anonymous No.20086089]

im also curious about the risk of mTokens... it would seem to be that because interest is dispersed every block and mETH is pinned to ETH [is this true?] then there is no way you could loose your money. because they are hedging puts/calls they will always have enough ETH to cash you out, but under the circumstance that all the loans default you just would stop earning your interest.

[Anonymous No.20086141]

>>20086089
this doesn't necessarily mean that DMG deserves to pump. Its just a governance token, and staking will earn you less than lending.

though you might argue that the MC of DMG should be close to the value of the assets it holds (in which case its way over valued right now)

[Anonymous No.20086180]

>>20085918

[Anonymous No.20086232]

>>20086180
when was that from?

[Anonymous No.20086262]

>>20086232
8 hrs ago
https://twitter.com/josefholm/status/1278795475009843201

[Anonymous No.20086313]

>>20085994
I don't see how they can completely circumvent the US security law in the short term, car lien is based on real world asset.

>>20086089
The team said it'll be heavily collateralized, but it's difficult to guarantee high yield with inefficient capital allocation.

You guys need to read the Maker forum post for a balanced view.

[Anonymous No.20086315]

>>20086262

i mean, its a little biased for a vested VC to hype their interests. But still i have a feeling that we're going to be getting a slow but steady stream of exciting news for the rest of the year

[Anonymous No.20086345]

>>20086313
>I don't see how they can completely circumvent the US security law in the short term, car lien is based on real world asset.

so again, does all that means is that it would require KYC to invest (i can imagine though that you would only need KYC for buy mTokens or staking, since hold DMG is mainly for governance)

[Anonymous No.20086377]

>>20086313
>inefficient capital allocation.
can you explain what you mean by this?

>You guys need to read the Maker forum post for a balanced view.

i read it, and the lack of response is the only (big) red flag that i have for this project. But also i don't really know anything about high level financial management, so the criticisms in those posts went a bit over my head

[Anonymous No.20086899]

>>20086345
I honestly don't know, if they put in KYC I wonder how many countries security law they'll have to comply.
I agree DMG currently is not a security, but will it become security when holders are getting revenue from lien's interest?

>>20086377
If you require 700% collateralization when 200% can be perfectly stable you're not using the capital efficiently. And the interest earned had to be spreaded among 700% capital therefore the yield must be lower.
Think about a bank that's even more conservative than a full reserve bank vs a fractional reserve bank.
You should look into the Maker post in detail, lots of good points there.

[Anonymous No.20087028]

>>20086899
token buybacks and burns are not technically profit sharing. that is one way to avoid security status

[Anonymous No.20087133]

>>20087028
Any ruling on that yet? It's clear where the money is from.

[Anonymous No.20087286]

>>20087133
not sure sorry, i only know the popular argument against profit sharing structures like this passing the howey test

[Anonymous No.20087306]

reminder that the dxd team received over 3 million DMG they can dump on the market.

[Anonymous No.20087537]

I warned about it yesterday ni shit its dumping hard today.

[Anonymous No.20087542]

>>20085918
HOW LOW ARE WE GOING ?

[Anonymous No.20088174]

Bottom's in, BUY TIME BABY

[Anonymous No.20088246]

>>20088174
What happened to no pajetes.
You ruined a perfectly good thread

[Anonymous No.20088702]

>>20087286
Crypto to crypto, maybe
But DMM's model rely heavily on USD and it's relatively similar to the traditional way of business

[Anonymous No.20088762]

I’m getting the fuck outta this shitcoin when I get home from waging today. Fuck this I’m buying ETH.

[Anonymous No.20088782]

>>20088762
>Fuck this I’m buying ETH.
Daily reminder that ETH is months away from bending the knee to Cardano.. ETH is nothing more than a triple digit shitcoin