The MakerDAO founder stated that they can exit their USDC assets and buy Ethereum with this money.
MakerDAO founder Rune Christensen stated that the DAI stablecoin may exit the USD stablecoin to eliminate the risk of USDC stablecoin. The DAI stablecoin is backed by 60% USDC.
MakerDAO Founder Considers Leaving USD
Speaking on MakerDAO’s Discord channel, Christensen said the issue was seriously addressed after the U.S. Treasury sanctioned its crypto mixer service Tornado Cash. The parent company of USDC has announced that it is freezing USDC holdings in Tornado Cash wallets following the sanctions.
“We will discuss it seriously at tonight’s meeting, but we should seriously consider leaving the USD. It is almost inevitable that this will happen and it would be realistic for us to prepare.”
The abandonment of USDC could result in the DAI stablecoin losing its US dollar peg. Because DAI maintains the current value through the “price stability module” (PSM). Allows printing of DAI with acceptable collateral such as PSM, USDC and ETH. If MakerDAO sells USDC to buy ETH, the fixed value of $1 could be lost due to the PSM outage.
Vitalik Buterin Says This Is A Terrible Idea
The statement made by the MakerDAO founder received reactions from many important names in the crypto industry. Ethereum founder Vitalik Buterin called the idea a “risky and terrible idea.” According to Buterin, a possible drop in ETH price could cause DAI to lose its dollar peg.
16827
