MakerDAO Founder Suggests ‘Seriously Considering’ Depegging DAI from USD | The Markets Café
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
Tuesday, September 26, 2023
No Result
View All Result
Subscribe
  • Login
The Markets Café
  • News
  • Politics
  • Markets
    • Stocks
    • Futures
    • Commodities
  • Crypto
    • News
    • Markets
    • NFT
    • DeFi
    • Explained
  • Economy
  • Finance
  • Investing
  • Forex
  • Real Estate
  • Tech
  • VideosHOT
  • Community
  • Charts
  • News
  • Politics
  • Markets
    • Stocks
    • Futures
    • Commodities
  • Crypto
    • News
    • Markets
    • NFT
    • DeFi
    • Explained
  • Economy
  • Finance
  • Investing
  • Forex
  • Real Estate
  • Tech
  • VideosHOT
  • Community
  • Charts
No Result
View All Result
The Markets Café
No Result
View All Result
  • News
  • Politics
  • Markets
  • Crypto
  • Economy
  • Finance
  • Forex
  • Investing
  • Tech
  • Videos
  • Community
Home Crypto Crypto News

MakerDAO Founder Suggests ‘Seriously Considering’ Depegging DAI from USD

by Press Room
August 12, 2022
in Crypto News
102 1
A A
0
21
SHARES
687
VIEWS
FacebookTwitter

 

MakerDAO (decentralized autonomous organization) founder Rune Christensen has called for the community members to consider depegging Maker (MKR)’s stablecoin DAI from USD, and perhaps (slowly) getting into ethereum (ETH) – which Vitalik Buterin argued would be a “terrible idea.”

Writing in the DAO’s Discord channel, as yearn.finance (YFI) core developer banteg shared, Christensen wrote to the members that,

“I think we should seriously consider preparing to depeg from USD… it is almost inevitable that it will happen and it is only realistic to do with huge amounts of preparation.”

The founder shared his reasoning behind this opinion, specifically referring to the US Treasury sanctioning the popular mixer Tornado Cash.

As reported, this week, the Treasury’s Office of Foreign Assets Control (OFAC) effectively banned the Ethereum-powered crypto mixing service in the US. While the community appeared to agree that bad actors seek to use services like Tornado Cash to launder funds, many argued that privacy-providing apps are important, and most agreed that the OFAC’s move would likely turn out to be a watershed moment in regulation.

Notably, the ban’s effects were felt promptly. Circle, the issuer of the USD coin (USDC) stablecoin, began feezing tokens, starting with some USD 75,000 worth of the stablecoin, which are connected to Tornado.

This is relevant as, per Dai Stats, nearly 50% of DAI is collateralized by USDC.

Christensen wrote that,

“I have been doing more research into the consequences of the [Tornado Cash] sanction and unfortunately it is a lot more serious than I first thought.”

Developer banteg shared another post on Thursday, per which MakerDAO is actually considering converting its USDC from the peg stability module into ETH.

However, Ethereum co-founder Vitalik Buterin described this as a “terrible idea”, stating that it’s risky, and should the price of ETH drop substantially, the “value of collateral would go way down,” with more issues and subsequent consequences likely to follow.

And Tron (TRX) founder Justin Sun agreed.

Importantly, Christensen noted that,

“What I actually wrote in the maker governance discord was that yoloing all the stablecoin collateral into ETH would be a bad idea.”

He did add, however, that moving some collateral into ETH slowly is an option “that can be considered.”

MKR is trading at USD 1,090 at 9:50 UTC, down 2% in a day and up over 3% in a week. Per CoinGecko, DAI is the 4th stablecoin by market capitalization with USD 6.95bn. 

____

 
– Maker Rises as Societe Generale Asks for Loan Backed by Bond Tokens
– MakerDAO Decentralizes

– Tornado Cash Ban Blows Winds of Both Division and Unity Through Crypto Community
– DoJ Not Happy With Celsius

– USD Coin to Overtake Rival Stablecoin Tether in Coming Years – Survey
– Lido DAO Votes Against Selling LDO 10M Tokens to Dragonfly Capital



Read the full article here

Related Articles

Crypto News

NASA plans to prove its next Moon landing is real using blockchain

September 26, 2023
Crypto News

Bitwise Draws Close to Spot Bitcoin Fund Approval With Latest Academic Record

September 26, 2023
Crypto News

Vitalik Buterin’s Privacy Pool proposal is just the start

September 26, 2023
Crypto News

Ex-SEC Official Pushes for DOJ Involvement

September 26, 2023
Crypto News

Celsius creditors vote in favor of reorganization plan

September 26, 2023
Crypto News

Cross-Chain Partnership Between Swarm and Wrapped Expands DeFi Capabilities

September 26, 2023

About Us

The Markets Café

The Markets Cafe is your one stope Finance, Politics and bussines news website, follow us to get the latest news and updates from around the world.

Sections

  • Commodities
  • Crypto Markets
  • Crypto News
  • DeFi
  • Economy
  • Explained
  • Finance
  • Forex
  • Futures
  • Investing
  • Markets
  • News
  • NFT
  • Politics
  • Real Estate
  • Stocks
  • Tech
  • Videos

Site Links

  • Contact
  • Advertise
  • DMCA
  • Submit Article
  • Forum
  • Site info
  • Newsletter

Newsletter

THE MOST IMPORTANT FINANCE NEWS AND EVENTS OF THE DAY

Subscribe to our mailing list to receives daily updates direct to your inbox!

  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

© 2022 The Markets Café - All rights reserved.

No Result
View All Result
  • News
  • Politics
  • Markets
    • Stocks
    • Futures
    • Commodities
  • Crypto
    • News
    • Markets
    • NFT
    • DeFi
    • Explained
  • Economy
  • Finance
  • Investing
  • Forex
  • Real Estate
  • Tech
  • Videos
  • Community
  • Charts

© 2022 The Markets Café - All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.