Since there’s a risk of hazards being linked with USDC, the MakerDAO Danger Core Unit not too long ago proposed the notion of diversifying the collateral for Dai. This suggestion was made as a response to the proposal. Nonetheless, MKR holders voted decisively in assist of sustaining USDC as the main collateral for Dai. With a vote of 79.02% in favor of increasing the USDC-to-DAI minting capability and lowering the fee to 0%, MKR holders voted in favor of retaining USDC as the first collateral for Dai.
Resulting from USDC’s “presumably extra harmful publicity to uninsured financial institution deposits” and “a weaker authorized framework” compared to its rivals, the suggestion suggested diversifying collateral into GUSD and USDP. Nonetheless, in keeping with the Danger Core Unit, the dangers which are related with using USDC as collateral have dramatically diminished from the earlier week. This info was offered by the Danger Core Unit.
When a string of failed banks compelled the USDC to briefly lose its $1 peg, the choice was made to keep up USDC because the principal collateral for Dai transactions. In response to this, MakerDAO has launched efforts to forestall Dai from being undercollateralized. These actions embody rising the cost to mint Dai utilizing USDC as collateral from 0% to 1%, in addition to decreasing the day by day minting cap for this process.
A vote of confidence within the stability of the USDC stablecoin and its capability to retain its $1 peg might be inferred from the truth that USDC will proceed to function the principal collateral for the Dai cryptocurrency. But, this does convey up issues in regards to the potential hazards which are related with putting a major quantity of reliance on a single collateral merchandise.
It’s fairly potential that new discussions and disputes round collateral diversification will proceed to emerge inside decentralized autonomous organizations equivalent to MakerDAO because the cryptocurrency market continues to develop and stablecoins turn out to be extra broadly used.
