MakerDAO co-founder Rune Christensen says DAI Stablecoin could fall out of the USD fix if all USD Coin (USDC) is sold, DAI Stablecoin is currently 60% backed by USDC. followdata from daistats
Christensen said on the MakerDAO Discord channel:Boycott of the US Treasury Recently, with the Tornado Cash service being the reason for consideration, Christensen said the sanctions were more serious than he initially thought. Circle behind USDC suspended USDC funds in its Tornado Cash wallet following the sanctions.
“There will be discussions at the meeting tonight. But I think we should seriously consider preparing for a depeg from the USD … which is almost inevitable.”
Abandoning the USDC will allow the DAI stablecoin to lose its immobilization against the US dollar, and because the current peg of DAI is maintained through a so-called “price stability module,” or PSM, that allows it to build a DAI for acceptable margins. Like USDC and ether (ETH), this fixed rate requires slightly more than $1 in margin to generate a $1 DAI.
According to Makerburn, DAI is backed by more than 80% stablecoin, with the majority of USDC. So if MakerDAO sells USDC to something else, such as ETH, it could cause DAI to lose its $1 fixation due to PSM disruption. Christensen says this is an acceptable risk and the MakerDAO community is ready to discuss it today.
Christensen’s comments have been criticized by a number of well-known figures including Ethereum co-creator Vitalik Buterin.callIt was a “risk and terrible idea”.
Robert Leshner, Founder of Compound Finance sayThat this could affect the stability of DAI and could have an impact on the overall DeFi space. “Converting DAI into a resilient asset would completely destroy it,” Leshner added.
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