Aave

Stablecoin

Gauntlet

USDC

Real USD

<table style="width: 100%; border-collapse:">
 <tbody>
  <tr>
   <td style="width: 100%; text-align: left;"><a href="https://en.coinotag.com/pro-exchange-134332/" target="_blank" rel="noopener"><strong><span style="color: #000000;">Before you reading,<br><span style="color: #e67e22;">Don't miss coins like PEPE again! Click here to find new PEPEs!</span></span></strong></a></td>
  </tr>
 </tbody>
</table>
<ul> 
 <li>Gauntlet recommends Aave to discontinue the Mai stablecoin from its lending protocol.</li> 
 <li>Mai’s value took a dive to $0.72, heightening depeg concerns.</li> 
 <li>Decentralized stablecoins face amplified risks amidst unstable crypto climates.</li> 
</ul> 
<p><strong>Aave’s Mai stablecoin faces deprecation as it loses peg, highlighting inherent challenges with decentralized stablecoins amidst fluctuating crypto market dynamics.</strong></p> 
<h2 id="strong-significant-price-dive-sets-off-alarms-strong"><strong>Significant Price Dive Sets Off Alarms</strong></h2> 
<p>The decentralized stablecoin Mai (MIMATIC), associated with the Aave lending protocol, has witnessed a concerning depreciation in its value recently. Starting the month at $0.88, it sharply fell to a low of $0.72 and now hovers around $0.78.</p> 
<h2 id="strong-gauntlet-s-proposition-to-aave-a-defensive-move-strong"><strong>Gauntlet’s Proposition to Aave: A Defensive Move</strong></h2> 
<p>In light of Mai’s value turbulence, Gauntlet, a crypto risk assessment entity, has strongly suggested that Aave commence the process of deprecating the stablecoin from its lending services. The firm recommends setting Mai’s loan-to-value (LTV) ratio to zero and hiking borrowing rates to stimulate repayments. This initiative could lead to projected forced liquidations amounting to roughly $70,000.</p> 
<h2 id="strong-behind-mai-s-persistent-depreciation-strong"><strong>Behind Mai’s Persistent Depreciation</strong></h2> 
<p>Mai, a product of the DeFi protocol QiDAO, has been grappling with stabilization issues since July. Despite its intended peg at the dollar, it has remained below $0.98. Astonishingly, QiDAO has yet to offer an explanation for this ongoing underperformance. Mai’s fully diluted market cap stands at a substantial $238 million, predominantly issued via the Polygon blockchain.</p> 
<h2 id="strong-the-volatility-of-decentralized-stablecoins-strong"><strong>The Volatility of Decentralized Stablecoins</strong></h2> 
<p>Parallel to Mai’s situation, another decentralized stablecoin, Real USD (USDR) – claiming backing by tokenized real estate assets from TangibleDAO – has also witnessed a depeg, resulting in a staggering 50% price drop. Decentralized stablecoins, in contrast to their centralized counterparts like USDC and USDT, are inherently more volatile. Their algorithmic and cryptocurrency-based collaterals make them susceptible to erratic market behavior. Notable previous depeg scenarios encompass USDX on the Kava blockchain and USDN on Waves.</p> 
<h3 id="strong-conclusion-strong"><strong>Conclusion</strong></h3> 
<p>The unfolding situation with Mai underscores the challenges decentralized stablecoins face in ensuring stability, especially amidst unpredictable crypto market dynamics. While Gauntlet’s recommendations to Aave are reactionary, they highlight the broader concerns around decentralized finance’s stability and reliance on algorithmic and crypto-backed mechanisms.</p> 
<p>The post <a rel="nofollow" href="https://en.coinotag.com/aaves-potential-drop-of-mai-stablecoin-amidst-deepening-depreciation-crisis/">Aave’s Potential Drop of Mai Stablecoin Amidst Deepening Depreciation Crisis</a> appeared first on <a rel="nofollow" href="https://en.coinotag.com">COINOTAG NEWS</a>.</p> 
<table style="width: 100%; border-collapse:">
 <tbody>
  <tr>
   <td style="width: 100%; text-align: left;"><a href="https://en.coinotag.com/altcoin-exchange-1333421/" target="_blank" rel="noopener"><strong><span style="color: #000000;">Did you missed the PEPE?<span style="color: #e67e22;"> No worries, click here to 100x potential memes!</span></span></strong></a></td>
  </tr>
 </tbody>
</table>

Aave’s Potential Drop of Mai Stablecoin Amidst Deepening Depreciation Crisis

Table of Contents

CO NEWS

Other articles published on Oct 14, 2023

House Speaker showdown: GOP donors in a money frenzy

The Role of Cryptocurrencies in the Israel-Palestine Conflict: A Perspective from Senator Elizabe...

Atlassian’s $1 Billion Bet on Loom: A Strategic Acquisition in the World of AI-Powered Video Coll...

Dogecoin (DOGE) Poised for Multi-Year Breakout – Consider Buying Now

Lucid Dreaming Made Accessible: Prophetic’s Halo Technology

Cosmos Price Prediction: ATOM Caged Inside an Interesting Pattern

Join our free newsletter for daily crypto updates!