Why is it that DAI cannot maintain parity with the Dollar?
DAI is a stablecoin that is issued when someone asks for a loan, therefore every DAI in circulation is someone’s debt. If a participant in the ecosystem decided to save that DAI (not spend it), some borrower will have difficulties paying their loan (plus interest), entering into default.
This is exactly the same as in the traditional financial system. The collective imagination thinks that banks lend the deposits they previously...