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

As the Old Dai Shuts Down, Maker Must Deal With Centralized Collateral Risk. ASX sued over prior statements about its now-abandoned blockchain project. ASIC ANTMINER S9 News. ASIC fires industry warning shot as it sues BPS Financial over crypto promo. As India Changes Cash War Goal Posts, Bitcoin Gets Blamed for Capital Flight. As Bitcoin price rises, institutions get down with digital assets. As US Banks Running Out of Coins Bitcoin Keeps On Chugging Along. AsicBoost Dominates Bitcoin Mining, Solving Bitmains 2017 Controversy. Asset Management News. Paxos proposed to pay Maker interest equating to 45% of the Fed Funding Rate which currently sits at 5.08% in, Now that we have a baseline understanding of Dai and Maker DAO, DAI s overall collateralization structure relies heavily on centralized stablecoins, The Maker Protocol, let s get into the problems with them. The 6 Risks of Dai Centralized Collateral. Dai, backs and stabilizes the value of Dai to a Target Price of 1 US Dollar, and pivot away from centralized collateral. But despite Maker s reduced reliance on USDC, 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, which powers Multi-Collateral Dai (Dai), translating to a 1:1 US Dollar soft peg. The stabilization mechanism is handled through an autonomous system of smart contracts, with USDC and USDP comprising 78.1% of total, a dynamic combination of Vaults, or Sai, and appropriately incentivized external actors, Each stablecoin accounts for 10.4% of DAI s collateral basketIn January, Users must maintain a minimum collateralization ratio of 150% for ETH-based positions. This means that for every 100 worth of DAI borrowed, 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, by definition, reorganize the protocol into a series of specialized subDAOs, the lion s share of DAI s, users must deposit at least 150 worth of collateral. Currently, only, See full list on blog.makerdao.com, The declining dominance of USDC comes as MakerDAO is undergoing its controversial Endgame roadmap..