MIM and UST get roasted by MakerDAO creator
MakerDAO co-founder Rune Christensen has called Terra’s strong UST and MIM Ponzi schemes that will not turn into anything as market conditions change.
The developer noted that the two digital assets are not built for “resilience” and are going to become victims of abnormal volatility and drop to zero. Christensen has also asked to stop scam users that are being used as “exit liquidity.”
He later added that he respects both projects to be strong Ponzi schemes and said that it is indeed possible to make a profit on both projects.
Later on, Christensen posted another tweet to clarify his previous posts. The developer has said that he has nothing against Ponzi schemes or high-risk assets. He noted that everyone has a right to have “fun the way they want.”
What are MIM and UST?
MIM, or Magic Internet Money, is a decentralized financial protocol that allows users to earn interest by depositing “interest-bearing assets,” as the project’s website suggests. In a nutshell, the project provides users with well-known DeFi solutions which are widely used in the industry.
The second coin that attracted MakerDAO’s developer is Terra’s UST stablecoin, which is part of a larger Terra blockchain protocol that utilizes algorithmic decentralized stablecoins. UST is a U.S. dollar-pegged asset that is also used for interest rate farming and borrowing.
The two assets have some common characteristics, and Christensen’s criticism targets the DeFi industry in general and the many projects that are pushed onto communities for the stable and “passive” income it offers.
