Makerdao DAI is decentralized and not backed by a company.

tobltobs · on Nov 4, 2019

Again the question is "How tied?"

I tried to get some info on their page and about the fifth sentence is:

> In the unlikely case of a black swan event, the system will employ Emergency Shutdown, a last resort to guarantee the stable price.

Hmm, I didn't wasted my time reading any further.

cdiddy2 · on Nov 4, 2019

the MakerDAO system has two parts, the DAI token and the MKR token. The MKR token is the governance token the is used to vote on things like interest rates debt ceilings, and other decisions. As people take loans out by over supplying ETH and getting DAI, the interest paid on these loans is used to burn MKR, this provides the incentive to keep DAI stable so that MKR keeps getting burned. If the system collapses then MKR is printed to make up the difference and restore DAI to a dollar. This would be bad for the governance tokens since their stake of MKR would get diluted and the price would go down.

EGreg · on Nov 4, 2019

One way is to use the BitShares model together with stop-loss orders, like this:

https://intercoin.org/economics.pdf

In order for that to happen, it has to be trading on multiple exchanges and for it to fail, all the exchanges’ stop-loss orders must fail at once.

Nothing can be pegged with absolute certainty, though, unless you liquidate everyone’s position before the peg breaks. Look at how Soros broke the Bank of England.