MakerDAO Weighs Ditching $390M of Gemini Dollars from DAI Reserve
The result could have a significant impact on Gemini and its stablecoin as MakerDAO’s reserve holds roughly 88% of total GUSD supply.
Decentralized finance () lending platform and stablecoin issuer could soon ditch $390 million of crypto exchange Gemini’s stablecoin from its reserves.
The protocol’s community is currently on a to decrease the maximum amount of GUSD to $110 million from $500 million held in Maker’s stablecoin reserve, called the Peg Stability Module ().
Less than 24 hours before the vote’s end, roughly 94% of those who have already voted are in favor of the proposal to cut GUSD. However, a similar in January saw a late rush of votes in favor of retaining GUSD, pushing that side to a razor-thin 50.85% majority.
The vote is significant for GUSD’s future, as Maker holds roughly 88% of the stablecoin’s $568 million circulating supply. Maker backs the value of the $4.5 billion DAI by holding cryptocurrencies such as Circle’s USDC and GUSD in the reserve, and increasingly by investing in real-world assets like government bonds.
– the crypto exchange founded and run by Tyler and Cameron Winklevoss and the issuer of GUSD – pays a 2% annual reward to MakerDAO for using the token as a reserve asset. The , however, argued that the platform could enjoy better revenue opportunities, for example by investing in short-term U.S. Treasuries, which currently offer about a 5% yield.
“Reducing GUSD exposure could allow for better capital efficiency by deploying funds into higher revenue generating opportunities,” the proposal said.
Edited by Stephen Alpher.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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