MakerDAO, a key player in the decentralized financial sector, faces liquidity risk in volatile markets. The MakerDAO community is considering increasing support for USDC Circle related cryptocurrency as an optional security to less the risk.
Dev Foundation had a call on the matter at 11am today, considering the code for the USDC collateral adopter.
Potential USDC collateral support
The possibility of collateral support of USDC, the move let it to lock USDC, dip DAI and marketing DAI to USDC to get DAI liquidity and resist its hold on $ 1 USD. It let the holders of the safe to close their Vaults without risking the of a high DAI hold against the USD.
USDC support decreased DAI decentralized “purity” (no more 100% supported by decentralized assets) improve its regulatory risk in the United States.
MakerDAO representatives provide a point of view on USDC support to dilute the company’s decentralization:
DAI is decentralized since hardly any central authority maintaining or approving access to it. The individual does all of it for themselves, that’s why the community is driving the parameters of the systems (per the discussions in forum).
The community has been discussing the potential for all kinds of assets as acceptable collateral in the system for ages. These assets are unable circulated such as security provided whether received by the MKR holders.
Assume it no more decentralized since some assets are likely to return it would be wrong.
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