Maker, the company behind the DAI stablecoin, has announced the addition of new collateral that can be used to generate the DAI stablecoin.
TUSD and USDC-B (USDC with different risk parameters) have been added to the Maker Protocol.
Both can now be used to generate #Dai.
Read more:https://t.co/VoWUX9p4V3
cc @TrustToken
— Maker (@MakerDAO) June 4, 2020
First of all we must remember that the structure of MakerDAO is based on a voting system that directly involves the project community, which means that both improvements and protocol updates are discussed between users and the platform team, in order to make the project more decentralized.
A vote (Continuous Approval Voting) was also held to decide on these new collaterals, i.e. TrueUSD (TUSD) and USDC-B (USDC token but with different risk parameters). During the vote, the MKR token holders expressed their positive opinion on the introduction of these new collateral elements.
In fact, the Maker system allows generating the DAI stablecoin thanks to the opening of vaults inside which must be deposited, as a guarantee and as collateral, the tokens approved for this purpose: Ethereum (ETH), Basic Attention Token (BAT), the USDC stablecoin, the wBTC token that was recently introduced and obviously these new tokens announced today.
As mentioned in the post, the introduction of the USDC stablecoin as a collateral has caused the discontent of several users because it is a centralized stablecoin on a protocol that is decentralized.
The new version USDC-B will be used in a liquidity crisis, as it happened during the crypto crash last March, which led to the rapid introduction of USDC precisely to overcome this problem.
Clearly, as for every asset that is added, Maker determines its risk parameters.
TUSD Risk Parameters
- Stability Fee: 0%
- Debt Ceiling: 2,000,000
- Liquidation Ratio: 120%
- Auction Lot Size: 50,000 TUSD
- Minimum Bid Increment: 3%
- Bid Duration: 6 hours
- Max Auction Duration: 3 days
- Liquidation Penalty: 13%
- Dust: 20 Dai
USDC-B Risk Parameters:
- Stability Fee: 50%
- Debt Ceiling: 10,000,000
- Liquidation Ratio: 120%
- Auction Lot Size: 50,000 USDC
- Minimum Bid Increment: 3%
- Bid Duration: 6 hours
- Max Auction Duration: 3 days
- Liquidation Penalty: 13%
- Dust: 20 Dai
Maker and the DeFi sector
Maker is very versatile and encourages its users to interact and be an integral part of governance.
This system is becoming more and more widespread for most of the decentralized finance (DeFi) projects, think for example of Compound, whose COMP token will allow users to actively participate in the protocol, but also projects like Aave and its LEND token that aims to have a platform self-managed by users.
