VAI - A Funny Kind of Stable Coin

Last month I collateralised some BTC on Venus.io in order to borrow some VAI and from there swap and get into some pools on PancakeSwap.

I got VAI at around 1-1 Vai-Dollar ratio - as I thought it was a stable coin.

But it turns out it's been finding staying stable a challenge recently, according to this price chart from CMC:

Recently it plunged to just under $0.90 and hasn't recovered.

This is actually fine if you minted it at $1.00 and then swapped for other coins (which I did) and now you can buy it back at $0.88 - you make yourself a further 10% profit!

In fact I just bought some to stake on Venus, remembering that I have to pay off that loan at some point - via staking on the same platform of course!

HOWEVER, it's not encouraging and may be a sign that all is not well in Venus land!

You might want to keep an eye on the VAI price going forwards, it doesn't seen like a secure place to store value if this can happen!

I read somewhere a week or so ago that Venus was copied straight from ETH, and that they have no mechanism for changing the print rate of VAI easily, hence no control over the inflation of the coin?!?

(Unfortunately I can't find the link now, I'll drop it in later if I find it!

Posted Using LeoFinance ^Beta