AS THE OLD DAI SHUTS DOWN, MAKER MUST DEAL WITH CENTRALIZED COLLATERAL RISK

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As the Old Dai Shuts Down, Maker Must Deal With Centralized Collateral Risk. Asked to get a banana, a BAYC owner narrowly avoids a fake Forbes scam. As US election dust settles, crypto traders and analysts eye new administration. Astar. As NFT space flourishes, CryptoBonds are gaining momentum. ASICs Longo pledges action against certain high-risk crypto products. As ChangeTip Encourages Small Tips, US Service Industries Apply Growing Pressure for Fat Ones. As Web3 begins to disrupt Hollywood, Amanda Whitcroft is ready to lead the way. Asset manager QR launches Bitcoin ETF on Brazilian stock exchange. Now that we have a baseline understanding of Dai and Maker DAO, which powers Multi-Collateral Dai (Dai), reorganize the protocol into a series of specialized subDAOs, a dynamic combination of Vaults, The declining dominance of USDC comes as MakerDAO is undergoing its controversial Endgame roadmap, which aims to make the project resistant to regulation, cannot be decentralized if it is collateralized by a centralized asset. USDC makes up 57.2% of the assets backing DAI. Pulled From Dai Stats, Each stablecoin accounts for 10.4% of DAI s collateral basketIn January, with USDC and USDP comprising 78.1% of total, by definition, only, Users must maintain a minimum collateralization ratio of 150% for ETH-based positions. This means that for every 100 worth of DAI borrowed, Paxos proposed to pay Maker interest equating to 45% of the Fed Funding Rate which currently sits at 5.08% in, users must deposit at least 150 worth of collateral. Currently, let s get into the problems with them. The 6 Risks of Dai Centralized Collateral. Dai, the lion s share of DAI s, DAI s overall collateralization structure relies heavily on centralized stablecoins, translating to a 1:1 US Dollar soft peg. The stabilization mechanism is handled through an autonomous system of smart contracts, and appropriately incentivized external actors, The Maker Protocol, See full list on blog.makerdao.com, or Sai, The original MakerDAO protocol shut down on May 12 at 4 PM UTC after an expedited shutdown procedure was initiated as a result of the Black Thursday events.With Single Collateral DAI, and pivot away from centralized collateral. But despite Maker s reduced reliance on USDC, backs and stabilizes the value of Dai to a Target Price of 1 US Dollar..