MakerDAO is considering a $3.5B ETH market buy, converting all

Question

MakerDAO is considering a $3.5B ETH market buy, converting all

USDC from the peg stability module into ETHeyes

What happened?

After it became clear that USDC had officially blacklisted every Ethereum address sanctioned by the US Treasury MakerDAO, the project behind $DAI, a stablecoin that is heavily backed by USDC, began to question whether USDC was still safe to use as backing.

This eventually led to a discussion on the MakerDAO Discord where some members proposed that $DAI should depeg from the dollar in the future as it would be too risky to continue to hold centralized stablecoins, and later Banteg, a core developer of Yearn Finance announced that MakerDAO, is considering a $3.5 billion ETH market buy, converting all USDC from the peg stability module into ETH.

What exactly does this mean?

This would imply that $DAI could potentially become more volatile, but also much more decentralized, given that the $USDC could be blacklisted due to its current backing, which is still a huge risk to stablecoins using USDC or USDT as collateral.

If this idea is accepted, it will have a significant impact on the market because $3.5 billion is a large sum that will be allocated to Ethereum. However, for the time being, it is only a consideration, and people like Vitalik have responded that they believe the idea is too risky to execute.

Conclusion

Because of the sanctions and the response of centralized stablecoins such as USDC and USDT by heavily blacklisting addresses, other protocols have been considering their position given that USDC plays a significant role in crypto. This is the first indication that projects who previously were comfortable with centralized stablecoins recognize the risk, and major projects in the crypto industry may diversify their assets into alternatives such as Ethereum or Bitcoin to prevent themselves from potentially getting blacklisted in the future.

Source: https://twitter.com/bantg/status/1557742913924186117 @everyone

#cryptocurrency #english #xmr

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13.08.2022

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Filippo · Answer 1

Filippo Автор вопроса

What's your take on this... @Needmoney90

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13.08.2022

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MakerDAO is considering a $3.5B ETH market buy, converting all

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