Analyzing Decentralized Autonomous Organizations (DAOS): Limits and Perspective Date: July 11, 2023 I. Introduction 1. Important concepts a. Defi b. DAO c. Stablecoins 2. Background 3. Aim a. the case of Maker DAO b. Why Maker DAO? 4. Methodology II. Basic coordinates for placing Maker DAO in the DEFI universe Law is code 1. Entity-based regulation 2. Self- regulation 3. Activity based regulation The DAI stablecoin Stablecoins 1. Concept 2. Money? Types 1. On chain collateralized 2. Others Legal Aspects 1. MICA regulation 2. Suitability? Daos And The Law 1. Incorporation? 2. General Partnership? 3. Unilateral apply of the law 4. BZX DAO III. DAI And The Decentralized Loans Financial Inclusion 1. DAI As a Leveraged Instrument In Crypto-Assets - Over-collateralized stablecoin  - - Algorithmic stablecoin DAI as an investment tool  Liquidation ratio  Stability fee Capital gains  The DAI saving rates  Leverage in crypto-assets DAI as a leveraged instrument in crypto-assets: - Ether prices increases - Deposit Ether in a MV - Generate DAI according to the LR - Buy Ether with the generated DAI 2. DAI As An Arbitration Instrument - Flash Loans  Execution in the same block - Arbitrage in CEX - Arbitrage in DEX IV. Maker DAO governance 1. Basic Operation a. ECB b. Maker DAO 2. Critical Analysis Of The Stability Mechanism. 3. A Self-Sufficient DAO? The Stabilization Mechanism Incentives for a Good governance/ seigniorage income: 1. Emergency shutdown 2. MKR token mint 3. Maker Buffer 4. Colla terral Critical Analysis Of The Stability Mechanism "The Death Spiral" What about over- collateralized stablecoins? 1. Stablecoin price under the peg 2. Governance token mints 3. Stablecoin under the peg 4. Governance token mint Risk Management In Maker DAO (Non-Exhaustive) 1. Multi-collateral 2. Risk parameters 3. Auctions External Actors 4. Emergency shutdown Mitigation, Any efficient stablecoin alternative? A Self-sufficient DAO? 1. Stablecoins issuers as wildcat Banks? 2. Transforming private money into public money 3. Replace private digital money with CBDC DAI For Financial Inclusion? Stablecoins regulation: 1. MICA regulation 2. US draft bills 3. Monetary competition V. Conclusions  Decentralization in Blockchain is relative; each system has more or less concentration  Who is responsible in DAOs to comply with the regulations?  Entity based and prescriptive regulation?  Maker DAO and DAI. What about the MICA implementation?  Incorporated DAO vs rogue DAO  The DAI use cases: leverage and flash loans