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DeFi

MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

June 1, 2023 - Around 2 mins mins to read

Key Points:

  • MakerDAO wants to lower the USDP peg stability module debt limit from 500 million DAI to 0 DAI.
  • The ruling has a profound influence on Paxos, the controversial stablecoin issuer.
  • The market value of Paxos’s BUSD has dropped from more than $16 billion to $5.2 billion.
The community of the decentralized finance (DeFi) lending technology MakerDAO decided Thursday to remove the $500 million Paxos Dollar (USDP) stablecoin from its reserves.
MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

The move has a huge influence on Paxos since Maker’s treasury controls almost half of USDP’s $1 billion supply.

This comes after New York state officials ordered the business to stop minting Binance USD (BUSD), another Paxos-led stablecoin, in February. Many unsolved concerns relating to Paxos’ monitoring of its relationship with Binance resulted in the order.

According to CoinMarketCap statistics, the market value of BUSD has dropped from more than $16 billion to $5.2 billion since then.

Voters overwhelmingly supported lowering the USDP debt cap from $500 million to zero, affecting half of the token’s supply.

MakerDAO, one of the major lending protocols in DeFi, intends to increase income by investing its substantial reserves in yield-generating techniques.

MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

Gemini, the GUSD stablecoin’s issuer, rewards MakerDAO for holding their stablecoin, and MakerDAO will soon receive a 2.6% dividend on up to $500 million in USDC via Coinbase Prime. Via investment management companies, the protocol is also increasingly investing in real-world assets (RWA), such as tokenized short-term US Treasury bonds.

MakerDAO has spent little more than $10.8 million in DAI as of June 2 to address increasing expenditures in 2023 alone. DAI is an algorithmic stablecoin created and controlled by MakerDAO that tracks the value of the US dollar. It is distinct from other prominent fiat-pegged stablecoins, such as the USDT or BUSD, which are produced by a centralized body and require each token in circulation to be backed by an equivalent amount of fiat money, typically the USD.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News

DAI

MakerDAO

Paxos

USDP

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
DeFi

MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

Key Points:

  • MakerDAO wants to lower the USDP peg stability module debt limit from 500 million DAI to 0 DAI.
  • The ruling has a profound influence on Paxos, the controversial stablecoin issuer.
  • The market value of Paxos’s BUSD has dropped from more than $16 billion to $5.2 billion.
The community of the decentralized finance (DeFi) lending technology MakerDAO decided Thursday to remove the $500 million Paxos Dollar (USDP) stablecoin from its reserves.
MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

The move has a huge influence on Paxos since Maker’s treasury controls almost half of USDP’s $1 billion supply.

This comes after New York state officials ordered the business to stop minting Binance USD (BUSD), another Paxos-led stablecoin, in February. Many unsolved concerns relating to Paxos’ monitoring of its relationship with Binance resulted in the order.

According to CoinMarketCap statistics, the market value of BUSD has dropped from more than $16 billion to $5.2 billion since then.

Voters overwhelmingly supported lowering the USDP debt cap from $500 million to zero, affecting half of the token’s supply.

MakerDAO, one of the major lending protocols in DeFi, intends to increase income by investing its substantial reserves in yield-generating techniques.

MakerDAO Proposes Eliminate Of $500M In USDP From Its Reserves

Gemini, the GUSD stablecoin’s issuer, rewards MakerDAO for holding their stablecoin, and MakerDAO will soon receive a 2.6% dividend on up to $500 million in USDC via Coinbase Prime. Via investment management companies, the protocol is also increasingly investing in real-world assets (RWA), such as tokenized short-term US Treasury bonds.

MakerDAO has spent little more than $10.8 million in DAI as of June 2 to address increasing expenditures in 2023 alone. DAI is an algorithmic stablecoin created and controlled by MakerDAO that tracks the value of the US dollar. It is distinct from other prominent fiat-pegged stablecoins, such as the USDT or BUSD, which are produced by a centralized body and require each token in circulation to be backed by an equivalent amount of fiat money, typically the USD.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News