This article was first published on: OmiseGO Network - Medium --
OmiseGO and MakerDAO are forming an alliance in our crusade for decentralized finance.
OMG’s currency-agnostic decentralized exchange will allow users the freedom to exchange and manage any digitized asset. However, the volatility of many cryptocurrencies makes them less than ideal as a medium for everyday transactions, in which users want to know that the money they are sending will be worth the same amount when it arrives at its destination.
Stablecoins provide a relatively static benchmark (as static as the currency to which they are pegged) within the volatility of the crypto market. But most stablecoins are centralized, backed by reserves held by private entities whose self-assessment of their own trustworthiness often leaves much to be desired.
Dai, on the other hand, is decentralized, its issuance and value transparently linked to assets held in smart contracts — a system that is better aligned with OMG both philosophically and functionally.
OMG and Dai will be coordinating in two w...
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