MakerDAO votes to keep USDC as primary collateral, rejects 'diversification' plan
The passed measure ends the 1% USDC to DAI minting fee that was previously implemented. MakerDAO, the decentralized autonomous organization (DAO) that governs the DAI stablecoin, has voted overwhelmingly to keep USD Coin (USDC) as the primary collateral for DAI. An alternative proposal to “diversify” collateral into Gemini U.S. Dollar (GUSD) and U.S. Dollar Paxos (USDP) has been reject ed in a 20% to 79% vote, according to the proposal’s official page. Vote totals for the proposal to normalize PSM Parameters. Source: MakerDAO official website In the proposal posted on March 17, the MakerDAO Risk Core Unit suggested that the risk of a cascading bank run in the U.S. has been reduced, thanks to responses from the U.S. federal government. As a result, the risk of using USDC as collateral “has declined significantly since last week and further solvency concerns or depegs are not expected at this time.” However, it also argued that some risks remain. USDC has “potentially more risky exp