- MakerDAO plans to completely eliminate the impact of DeFi protocols Curve and Aave
- The project has more than $3.1 billion in collateral, which provides DAI
March 11, MakerDAO DeFi project, requested an urgent executive proposal to mitigate risks to the protocol. The company said it has a variety of collateral “at risk” related to the USDC situation. MakerDAO currently has over $3.1 billion in collateral backing DAI.
In this regard, the project proposed several changes:
- Lower the liquidity provider collateral debt ceiling to 0 DAI
- Reduce USDC daily mining limits from 950M DAI to 250M DAI
- Increase commission from 0% to 1%
MakerDAO plans to completely eliminate the influence of decentralized protocols Curve Finance and Aave. The company said in a statement:
“Curve is using a USDC fixed price of $1 and there is a risk of accumulating bad debts. Aave does not have such risks, but the overall risk and reward for investing funds is not favorable in the current environment.”
Another proposal from MakerDAO is to increase the debt ceiling for the stablecoin Paxos Dollar (USDP), from 450 million DAI to 1 billion. The company said:
“Paxos has stronger reserve assets compared to other stablecoins, which consist primarily of US Treasury bills. They have relatively less potential for depreciation compared to other stablecoins.”
