Is there a limit to how much Dai can be created or destroyed at any given time?
Yes, there is a limit to how much Dai can be created or destroyed at any given time.
This limit is determined by the Maker Protocol, which is a set of smart contracts that govern the creation and destruction of Dai. The Maker Protocol has a built-in mechanism called Target Rate Feedback Mechanism (TRFM) that sets the maximum amount of Dai that can be created or destroyed at any given time. The TRFM takes into account the current supply and demand for Dai, as well as other factors such as market volatility, to determine the maximum amount of Dai that can be created or destroyed.
This limit helps to ensure that the supply of Dai remains stable and does not become too large or too small.
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