• Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA
Thursday, February 2, 2023
WongaNews.com
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading
No Result
View All Result
WongaNews.com
No Result
View All Result

MakerDAO plans against sanctions from USDC exposure

August 11, 2022
in Regulations
Reading Time: 3 mins read
A A
ShareShareShareShareShare

Following Circle’s freeze of blacklisted Tornado Cash addresses, MakerDAO is re-assessing the risks associated with its USDC collateral.

On August 8, issuers of USDC stablecoin Circle froze USDC tokens belonging to 38 wallet addresses blacklisted by the U.S. Treasury Department. One of the wallets was identified as a DAI Tornado pool. As a result, there have been concerns from the MakerDAO community about their exposure to USDC and the risk of being hunted by regulators.

Dear @MakerDAO $DAI community… you should start unwinding your USDC collateral immediately, converting it into stables that are more censorship resistant.

You have some time to do it, but you need to get started.

— Erik Voorhees (@ErikVoorhees) August 8, 2022

In response, the community has been actively engaged in deep discussions via the Discord channel on the way forward.

DAI’s exposure to USDC and sanction risk

DAI’s market capitalization of $7.5 billion makes it the largest DeFi protocol by total value locked.  It is currently collateralized by  33.9% USDC, 23.2% ETH, and 7.6% WBTC, among other assets. With $3.56 billion USDC locked in the Maker protocol, USDC represents the largest source of collateral. 

The sustainability of DAI is under question as it is heavily backed by collateral that regulators can censor. MakerDAO delegate Chris Blec believes it could lead to a sanction on DAI

“Good luck not getting sanctioned when DAI is already sitting in sanctioned smart contracts that can’t be paused,” Blec added.

Another issue brewing in the community concerns Maker’s Peg Stability Module (PSM). The PSM allows users to swap a given collateral type directly for DAI at a fixed rate. At the moment, Maker’s USDC PSM contract holds 3.56 billion USDC.

Since some DAI users interacted with Tornado Cash through the USDC PSM, the contract could be implicated in the case of a probe. If a sanction has to blacklist the PSM, the DeFi market as a whole could be at risk of contagion.

An emergency Shutdown is likely

According to MakerDAO founder Rune Christensen, while the protocol may not resist sanctions in the short run, it will take immediate actions to prepare against potential attacks. Rune said:

“The best option is to count on not getting sanctioned now, and then work on the fundamentals we need to have in place to be able to actually resist a real physical attack. We should just accept that if they want to shut us down, the outcome is [an] emergency shutdown.”

Get an Edge on the Crypto Market 👇

Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits


Credit: Source link

Related articles

Regulatory action against Mango Markets exploiter is a win for DeFi — Moody’s

February 2, 2023

Why America Should Ban Crypto – WSJ – The Wall Street Journal

February 1, 2023
ShareTweetSendPinShare
Previous Post

Could Today’s CPI Data be Bullish? – Blockchain News, Opinion, TV and Jobs

Next Post

South Korea double downs on crypto regulation, arrests 3 people over illegal trading biz

Related Posts

Regulatory action against Mango Markets exploiter is a win for DeFi — Moody’s

February 2, 2023

Recent charges brought against Mango Markets exploiter Avraham Eisenberg will have a positive impact on the decentralized finance (DeFi) space,...

Why America Should Ban Crypto – WSJ – The Wall Street Journal

February 1, 2023

Why America Should Ban Crypto - WSJ  The Wall Street Journal Credit: Source link

Britain Announces Plans for ‘Robust’ Crypto Rules, Launches Consultation – Regulation Bitcoin News

February 1, 2023

The U.K. has unveiled “ambitious plans” to “robustly regulate” various crypto activities, while seeking to protect customers and grow its...

When Regulating Crypto, Please Target the Bad Actors, Not the Asset

February 1, 2023

Join the most important conversation in crypto and web3! Secure your seat todayThere’s no denying 2023 feels a lot better...

Crypto enters new phase: New regulatory laws to manage risks and issues | Dentons

February 1, 2023

The fundamental issue with blockchain One of the most important developments in the regulation of digital assets is found in...

Load More
Next Post

South Korea double downs on crypto regulation, arrests 3 people over illegal trading biz

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

SBF’s bail bond co-signers may soon be named

January 31, 2023

SBF tried to meet FTX replacement CEO John Ray

January 30, 2023

Sheriff Network Reviews FightOut Crypto Presale – This Move-to-Earn Passive Token Could 10X Your Money

January 24, 2023

About Us

Wonga News is an online news portal that aims to provide the latest crypto news, blockchain, regulations, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch with us!

What’s New Here!

  • BankProv Stops Offering Loans Secured by Crypto Mining Rigs
  • LBank Exchange Will List LiveGreen Coin (LGC) on February 10, 2023
  • Regulatory action against Mango Markets exploiter is a win for DeFi — Moody’s

Newsletter

Loading
  • Contact Us
  • Affiliate Disclosure
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2022 WongaNews.com - All Rights Reserved!

No Result
View All Result
  • Live Prices
  • Crypto News
  • Bitcoin
  • Altcoins
  • NFT News
  • Blockchain
  • Regulations
  • Trading

© 2022 - WongaNews.com - All Rights Reserved!

  • bitcoinBitcoin(BTC)$23,834.003.19%
  • ethereumEthereum(ETH)$1,669.965.88%
  • USDEXUSDEX(USDEX)$1.07-0.47%
  • tetherTether(USDT)$1.00-0.02%
  • binancecoinBNB(BNB)$330.217.08%
  • usd-coinUSD Coin(USDC)$1.00-0.07%
  • rippleXRP(XRP)$0.4128672.68%
  • binance-usdBinance USD(BUSD)$1.000.08%
  • cardanoCardano(ADA)$0.4029785.27%
  • dogecoinDogecoin(DOGE)$0.0936831.16%
  • matic-networkPolygon(MATIC)$1.2312.64%
  • okbOKB(OKB)$40.066.78%
  • solanaSolana(SOL)$24.915.40%
  • staked-etherLido Staked Ether(STETH)$1,664.575.94%
  • polkadotPolkadot(DOT)$6.525.19%
  • litecoinLitecoin(LTC)$100.474.48%
  • shiba-inuShiba Inu(SHIB)$0.0000123.34%
  • avalanche-2Avalanche(AVAX)$21.8613.70%
  • tronTRON(TRX)$0.0635882.57%
  • uniswapUniswap(UNI)$7.027.11%
  • daiDai(DAI)$1.00-0.01%
  • cosmosCosmos Hub(ATOM)$14.879.07%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,782.003.18%
  • ToncoinToncoin(TON)$2.477.37%
  • chainlinkChainlink(LINK)$7.286.10%
  • moneroMonero(XMR)$178.862.36%
  • ethereum-classicEthereum Classic(ETC)$22.615.61%
  • leo-tokenLEO Token(LEO)$3.36-6.79%
  • AptosAptos(APT)$18.219.22%
  • bitcoin-cashBitcoin Cash(BCH)$138.184.71%
  • Aerarium FiAerarium Fi(AERA)$7.12-13.06%
  • stellarStellar(XLM)$0.0932533.96%
  • apecoinApeCoin(APE)$6.216.66%
  • quant-networkQuant(QNT)$149.557.96%
  • filecoinFilecoin(FIL)$5.7211.02%
  • nearNEAR Protocol(NEAR)$2.469.32%
  • crypto-com-chainCronos(CRO)$0.0813413.38%
  • lido-daoLido DAO(LDO)$2.326.96%
  • algorandAlgorand(ALGO)$0.2559067.83%
  • vechainVeChain(VET)$0.0248929.60%
  • hedera-hashgraphHedera(HBAR)$0.0689888.25%
  • internet-computerInternet Computer(ICP)$6.002.19%
  • fantomFantom(FTM)$0.579.38%
  • decentralandDecentraland(MANA)$0.798.27%
  • axie-infinityAxie Infinity(AXS)$11.588.69%
  • aaveAave(AAVE)$91.6412.44%
  • the-sandboxThe Sandbox(SAND)$0.767.01%
  • flowFlow(FLOW)$1.149.81%
  • eosEOS(EOS)$1.083.12%
  • elrond-erd-2MultiversX(EGLD)$44.324.94%