The Holy Trinity Of Crypto

Benjamin Roberts, the CEO of Ether Capital Corp spoke about Ethereum, Augur, and MakerDAO in his Twitter handle. The thread began with a remark from Roberts that the three projects were ingenious independently and that the three of them together represented the ‘Holy Trinity of Crypto.’ After that, Roberts went on to analyze the reasons as to how the combined utility of Ethereum, Augur, and MakerDAO would result in the increased value of Ethereum.

In his first point, Roberts explained that the price of Ethereum (ETH) increases when the demand for DAI goes up. He further went on to state that this was one of the major factors that a large number of people in the community miss about MakerDAO. Roberts twitter post read “How? DAI demand > supply causes DAI price to exceed $1.00. This creates an incentive for ‘arbitrageurs’ to open CDPs and sell DAI proceeds for greater than $1.00.”

Another topic Roberts spoke about opening a CDP. He explained that it was necessary to lock collateral in the Maker System to open a CDP. The collateral is in the form of Ethereum, where the token is locked, which in turn reduces the supply of the coin and increases its price.

Roberts’ third point went on to explain the multi-collateral DAI. His post read :

“What about multi-collateral DAI? The same process increases the value of any asset used as collateral. If the Ethereum network is securing it, the collateral value increase leads to higher value of the Ethereum network.”

Later, he went on to state that the demand for the stablecoin kicks off the feedback loop resulting in Augur accelerating the DAI feedback loop. He further mentioned that as the cryptocurrency market enables the growth for DAI, it is also likely to grow to near infinity.

According to Benjamin, if the cryptocurrency market’s volatility is ignored, Augur acquires and an incredible amount of utility. He feels that this is Augur’s goal and they will adopt DAI as the quote currency for all markets.

One of Roberts twitter posts read,

“8/ What happens when Augur adopts DAI? Augur acquires more utility and opens interest increases substantially. This creates a lot of demand for DAI, putting upward pressure on the ETH price (as described above).”

Following this post, the CEO of Ether Capital Corp, Benjamin Roberts said that the demand for REP would increase and the currency could likely be collateral in multi-collateral DAI. He said,

“The Ethereumblockchain secures the REP market cap, and this creates more utility for ETH, and further increases value yet.”

Following this was another remark made by Roberts which read :

“10/ If all of this doesn’t implode, it’s going to be the greatest financial, social and economic revolution in history. Akin to the adoption of the internet, maybe more powerful because of deep synergies within the ecosystem and incentives for modifying behavior in the real world.”

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

Related Articles

Back to top button