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MakerDAO considers USDC as collateral for more liquidity


MakerDAO considers USDC as collateral for more liquidity

MakerDAO, a major player in decentralized finance, faces a liquidity risk in the currently uncertain market. The MakerDAO community is considering accepting Circle’s USDC cryptocurrency as an alternative security to take this risk. This emerged from a community thread on March 16.

The developers of the MakerDAO Foundation held a conference call today at 11:00 a.m.ET on the issue. This was the USDC acceptance code as collateral. You can listen to a recording of this call here.

According to the publication, which concerns a possible acceptance of the USDC as collateral, this decision would allow the USDC to be imprisoned, beaten DAI and sold to the DAI against USDC. This is intended to restore the liquidity of the DAI and to raise its parity to $ 1. This would allow vault holders to close their vaults without losing the low exchange rate between the DAI and the US dollar.

Some negative aspects are also discussed. According to the author, USDC support would reduce the decentralized “purity” of the DAI (it would no longer be 100% covered by decentralized assets) and, among other things, would increase regulatory risk in the United States.

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A MakerDAO representative rebutted the argument that the USDC would reduce the decentralization of the business:

The DAI is decentralized because there is no central authority to shape, preserve or authorize access for people. Each individual does everything for himself, so that the community determines the parameters of the systems, comments on the discussions in the forum.

The community has long discussed the assets that could be included in the system as acceptable collateral. Many of these assets are not decentralized, such as token securities, if they were to be accepted by MKR holders.

It would be wrong to say that the DAI is not decentralized due to some of the assets that cover it.

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