![]() ![]() According to the company, Curve’s fixed $1 price for USDC presents a risk of insufficient debt accrual and potential bank runs, leading to market insolvency if the USDC’s market price drops significantly below the current collateral factor. Maker DAO is considering entirely eliminating its exposure to decentralized finance protocols Curve and Aave. Maker Aims to Eliminate Exposure to Curve and Aave The daily minting limit of the GUSD stablecoin module may also be reduced from 50 million DAI to 10 million DAI if the proposal is accepted.The plan recommends lowering the daily minting limits of its USDC peg stability module from 950 million DAI to 250 million DAI and introducing a 1% fee to prevent the excessive dumping of USDC.It suggests reducing the debt ceiling of UNIV2USDCETH-A, UNIV2DAIUSDC-A, GUNIV3DAIUSDC1-A, and GUNIV3DAIUSDC2-A liquidity provider collaterals to zero DAI.The proposed Maker DAO emergency plan involves several actions to mitigate risks to its protocol: Maker DAO currently holds over 3.1 billion USDC in collateral supporting its DAI stablecoin. As per a forum post on March 11, the company expressed concern about its multiple collaterals being exposed to the “tail risk” of USDC due to the sudden de-pegging of the stablecoin that began today. Maker DAO, the issuer of the DAI stablecoin pegged to the US dollar, has made an urgent executive proposal to address risks to its protocol. Maker DAO’s DAI Stablecoin Becomes the Latest Victim After USDC The collapse of USDC has forced several firms to take quick action as DeFi platform Maker DAO recently filed an emergency proposal to prevent its DAI stablecoin from dropping further after being negatively impacted by USDC’s depeg. As a result, it created panic among investors and brought subsequent sell-off, depegging the USDC from $1. Circle, the issuer of USD Coin (USDC), today announced that it faced challenges in withdrawing $3.3 billion from its $40 billion deposits at Silicon Valley Bank (SVB). ![]() The crypto market has again met with another stablecoin collapse after UST as investors are rushing to withdraw their funds. ![]()
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