BTC-Newswire

MakerDAO surge following new proposal on stablecoins

Press Releases Crypto News Crypto-News MakerDAO surge following new proposal on stablecoins

MakerDAO is insulating itself from the vulnerability to risk associated with stablecoins according to the firm’s new proposal.

It is a reaction to the recent depegging of USDC, which has rekindled worries over stablecoins in poor market circumstances. This proposal has seen MKR gain over 5% in the last 24 hours, trackers on Mar. 11 show.

The urgent proposal aims to solve the problem associated with unstable cryptocurrencies. The latter will emphasize minimizing exposure to unstable stablecoins while simultaneously working to increase the DAI peg’s resilience. DAI is an algorithmic stablecoin issued by MakerDAO.

How MakerDAO aims to achieve this

The DeFi platform intends to accomplish those objectives by raising the costs associated with USDC-DAI swaps. In addition, if the plan is approved, a maximum of 250m DAI may be minted daily.

To address the uncertainty surrounding the centralized stablecoin market, the Risk Core Unit has submitted an emergency proposal for Executive Vote to limit Maker’s exposure to impaired stablecoins and reinforce the DAI peg.

→ https://t.co/Kjb0fSlZNX

1/ pic.twitter.com/LQRgHbDzYF

— Maker (@MakerDAO) March 11, 2023

The logic for increasing swap costs is that doing so will reduce the number of USDC-DAI swaps while also providing an incentive for using other methods of selling USDC. If such measures are not made, there is a possibility that additional exposure to the liquidity concerns associated with stablecoin runs would result.

The plan has several incentives, including an increased debt limit of 1b DAI. The USDP to DAI exchange charge is more than the DeFi platform w

Go to Source to See Full Article
Author: Brenda Mary

Did you like this?
Tip BTC Newswire with Cryptocurrency