Was just going thru Defi and the Future of Finance, and in its section on DAi, it has the following ominous note:
> No clear arbitrage loop exists to maintain the peg
Does this mean that DAI is susceptible to bank runs even though it’s collaterized?
They are overcollaterized with a lot of coins, btc, eth, … So you could check their treasury to know when the money used to keep peg run out, and you could exit as you wish.
Make token is ultimately used to maintain the peg.