MakerDAO withdraws 250 million USDC from Coinbase Custody to help DAI peg

MakerDAO just transferred half of its $500 million deposit to Coinbase Custody to help peg upkeep for the DAI stablecoin. MakerDAO withdraws 250 million USDC fr...

MakerDAO withdraws 250 million USDC from Coinbase Custody to support DAI peg

MakerDAO just transferred half of its $500 million deposit to Coinbase Custody to help peg upkeep for the DAI stablecoin.

MakerDAO withdraws 250 million USDC from Coinbase Custody to supportMakerDAO withdraws 250 million USDC from Coinbase Custody to help DAI peg

As a end result, DAI’s USDC reserve fund will require to sustain a minimal of $200 million, and this quantity lately dropped drastically to $60 million. Immediately, this protocol transferred 250 million USDC deposited at Coinbase Custody to deposit into the Peg Stability Module (PSM) liquidity pool.

PSM is a mechanism that lets end users to trade USDC and DAI one:one peer-to-peer to assist sustain the fixed cost for Maker’s decentralized stablecoin. If this liquidity reserve dries up, DAI will simply fall into decline.

A member contributing to the governance of MakerDAO, PaperImperium (representative of GFX Labs), shared:

“The worst case scenario would be for DAI to depreciate in a matter of minutes or hours. But you can monitor the flow of USDC from Coinbase-related addresses. USDC can be injected in minutes.” minute.”

On Sunday, the MakerDAO neighborhood identified that the project’s PSM fund fell under $300 million. Allan Pedersen (CEO of the Monetalis lending platform) also spoke numerous instances in the discussion forum to request the SHRM deposit management unit to swiftly inject income into PSM.

Before the income movement from Coinbase Custody was injected, about extra than $a hundred million was maintained in PSM’s liquidity pool from October 29-31.

In the Maker forum, Pederson mentioned the group is doing work to assist automate PSM by integrating intelligent contracts. However, at the second, the liquidity transfer phase will have to rely on the agents, fund managers, legal units and centralized exchanges.

Coinlive compiled

Maybe you happen to be interested:

Join the discussion on the hottest problems in the DeFi industry in the chat group Coinlive Chats Let’s join the administrators of Coinlive!!!

More From Crypto News

Software Flaw Let Nearly 4,000 BTC Leave Liquid Reserve
Crypto News

Software Flaw Let Nearly 4,000 BTC Leave Liquid Reserve

A software flaw in the Liquid Network allowed nearly 4,000 BTC to exit the platform’s reserve through a mechanism that the network’s own validation logic treate...

Sep 21, 20263 min read
US Treasury Sanctions Iranian Crypto Exchange BitBank
Crypto News

US Treasury Sanctions Iranian Crypto Exchange BitBank

The US Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned BitBank, an Iran-based cryptocurrency exchange, according to a Treasury press release.

Sep 21, 20263 min read
XRP ETFs Hit 10-Week Green Streak as Solana Funds Lead
Crypto News

XRP ETFs Hit 10-Week Green Streak as Solana Funds Lead

XRP exchange-traded funds have recorded net-positive weekly flows for 10 consecutive weeks, extending the longest sustained inflow streak among altcoin ETF prod...

Sep 20, 20262 min read
Crypto Options Nearly Double Market Share as Derivatives Shift: Report
Crypto News

Crypto Options Nearly Double Market Share as Derivatives Shift: Report

Crypto options have nearly doubled their share of Bitcoin derivatives open interest, according to a joint report from Glassnode and Bybit that maps how the stru...

Sep 20, 20263 min read
Saylor Hints at More Strategy Bitcoin Buys After Fed Hike
Crypto News

Saylor Hints at More Strategy Bitcoin Buys After Fed Hike

Michael Saylor has signaled that Strategy may continue accumulating Bitcoin following the Federal Reserve’s latest rate increase. The remarks are a hint at inte...

Sep 20, 20263 min read
Bank of Russia Proposes 1% Capital Cap for Crypto Risk
Crypto News

Bank of Russia Proposes 1% Capital Cap for Crypto Risk

The Bank of Russia has released a draft regulation proposing that Russian banks and banking groups cap their covered cryptocurrency and foreign digital instrume...

Sep 20, 20263 min read
Shiba Inu

Author

Shiba Inu

Read more CoinLive coverage and analysis from Shiba Inu.