- Decision taken unanimously
- This is half of the total USDP supply in the market.
- The reason for this decision was the low liquidity of the asset and the lack of payment for its storage in PSM
- Previously, Paxos offered to introduce deductions in exchange for increasing the share of USDP
- However, the agreement never went ahead, probably due to the company’s problems in the US.
Yesterday, June 1, ended vote on a proposal to completely remove Paxos USD (USDP) from the MakerDAO Pegging Stabilization Module (PSM). The decision was taken unanimously.
His put forward by the organization Monet Supply. The firm explained its decision by the fact that USDP has limited liquidity on open markets and is “less useful” for promoting DAI.
To clarify, MakerDAO receives royalties from other stablecoin issuers, such as Gemini. The company pays for MakerDAO to hold a certain amount of assets in PSM.
In January of this year, Paxos put forward a proposal to expand cooperation. In particular, this provided for the same “royalty” in the amount of $29 million annually for increasing the USDP share in PSM to $1.5 billion.
In their proposal, Monet Supply stated that this agreement did not receive any continuation. The reason for this may be the problems of Paxos in the US.
Interestingly, MakerDAO held half of the total USDP supply in the market. “Draining” of such a volume of tokens will definitely affect the stability of the “coin”. Paxos has yet to comment on the situation.