Almost 80% of MakerDAO members voted to retain USDC as primary DAI reserve asset. The post 79% of MakerDAO Members Vote to Keep Reserves in USDC appeared first on Tokenist.
79% of MakerDAO Community Vote to Retain USDC as Primary DAI Reserve Asset
Members of MakerDAO voted to retain USDC as the primary reserve asset for its DAI stablecoin, despite Circle’s stablecoin breaking its peg last week and hitting an all-time low. In a “run-off vote,” where members choose reserve options in order of preference, around 79% of community members voted to keep USDC, while the rest preferred diversifying the reserves.
A Proposal to Diversify Into GUSD and USDP
The crisis triggered by SVB and USDC’s depeg urged the MakerDAO community to reconsider DAI’s reserves. The members were presented with two choices, including diversifying the stablecoin’s reserves using other candidates such as Gemini’s GUSD and Paxos’ USDP or sticking with USDC.
“Among integrated stablecoins, USDP and GUSD seem to still have somewhat lower fundamental counterparty risk, with greater assurance of the stablecoins being bankruptcy remote and somewhat lower risk within their backing.”
– MakerDAO said in the proposal.
DAI, the fourth biggest stablecoin by market cap, maintains its USD peg through collateralized debt positions. This system allows users to deposit collateral using cryptocurrencies such as Ether (ETH) and mint DAI against those currencies. Besides digital assets, MakerDAO also backs DAI’s value through real-world assets, including liabilities from traditional banks.
Do you think the MakerDAO community should have chosen to diversify DAI reserves? Let us know in the comments below.