Sigh, it just won't stop...
which in the beginning let's face it will consist of 90%+ MKR
Why haven't you bothered spending 20 minutes trying to figure out the thing your misunderstood genius is apparently able to so effortlessly pick apart? Maybe you would have read about something called the debt ceiling, the primary risk management mechanism that enforces diversity of the collateral, as we would obviously never be dumb enough to allow a 90% MKR collateral scenario. If you want me to concede that is impossible to insure an asset with itself and that doing so would be really dumb, then congratulations, you are right. You are also being completely irrelevant to the situation as that is literally rule number one of insurance and obviously not something anyone who spent more than a minute thinking about collateral insurance would ever do.
And calling it insulting that I am spending time here to patiently bang my head against a wall in an effort to explain why you're wrong, and it then turns out you clearly haven't even bothered with reading the white paper, is insulting. Just the fact that you seriously thought we could be stupid enough to not prevent an obviously stupid failure mode, is insulting. Why was your reaction "oooh, these guys are idiots, let me go tell them on a forum how stupid they are", rather than "hmmm, maybe I should read the white paper instead since I've clearly missed something".
But the top of the stupidity list is your clear attempt to claim that posting something on a forum and if no-one has proven you are wrong with arguments to your satisfaction (see above stupid and more stupid) - That is the proof that your system is 100% solid!
There you go calling me stupid again. You're really being a dick.
Don't bother replying unless you're going to finally give me a solid argument for why the system doesn't work, now that I've shown you that your lazy assumption that the Dai will be primarily collateralized by MKR, was wrong. I have actual work to do and you are wasting my time.