Bulls and bears have been fighting ferociously recently, with bulls very much slaughtered in a carnage during yesterday’s doom season.

Yet amid despair and all around a feeling of market chaos, calmer waters greet DAI, the first ever algorithmic stable currency.

It is art, in many ways, far more superior than any post modern (a contradiction) piece shown at Tate in London.

That’s because so much goes behind the scenes to keep that price stable. Half a million eth being the most visible aspect. That’s how much is locked, worth around $125 million at the moment, to support DAI’s market cap of circa $45 million.

For the privilege, those that put forth the collateral are in effect able to borrow in a decentralized manner, so going long on eth.

As you can see there, one etherean is playing at the edges with nearly $2 million at risk of being called if price moves much lower to cut his or her 195% ratio.

The individual can however wipe, which is adding more eth to the position, while others can draw. That is taking DAI with which they can then buy more eth or other tokens provided they have a safe margin.

Plenty don’t, with around $4 million at risk of liquidation if ethereum’s price suddenly decides to move down to $230.

There is no shorting here, but a new version is planned for September which will have many new features.

Yet that this works at all is impressive. $125 million locked in a smart contract and not hacked? What wizardry this is, we do not know, but what we do know is that it shows one can actually code things that can not be hacked.

For now, anyway. At any moment that can change, but every day that goes by and this keeps working, it is a day more when we can say it was safe.

For more preposterous statements, such as unhackable, we’d have to wait at least half a decade or an entire decade.

If such reality does come to be, then something which sounds like heresy would be proven. Security researchers are keen to say there is no such thing as 100% safe when it comes to code, yet that might not be true.

You can not really hack bitcoin or eth, so it is possible, at least within any reasonable meaning of safe. For smart contracts we can not yet say the same, but if this thing does keep running, that will begin to change.

That’s because we might perhaps learn that some things are truly unhackable, and that man can write unhackable code. Then it would be a question of mere mortals that can not write unhackable code and gods that can perform such magic.

Copyrights Trustnodes.com