Buy Crypto
Pay with
Flash news
copy link
create picture

MakerDAO Recommends DAI-USD De-pegging to Limit Attack

Gauri Pant - Coinnounce
2022-08-29 02:48
In light of recent discussions about separating its native token from USD Coin (USDC) during the approval of Tornado Cash, MakerDAO co-founder Rune Christensen reached out to the community and explained why free-floating DAI might be the only option for the decentralized autonomous organization (DAO).In a blog post titled “The Path of Compliance and the Path of Decentralization: Why Maker has no choice but to prepare to take Dai IPO,” Christensen explained that he miscalculated the risks associated with risk-weighted assets (RWA).
He stated:
Physical crackdown on crypto can happen without prior notice and possible recovery, even for legitimate, innocent users. This violates two fundamental assumptions we use to understand RWA risk and makes a severe threat much more serious.
While citing the protocol’s inability to comply with regulatory agencies, Christensen suggested, “As Dai has always been aiming and purpose, we must choose the path of decentralization.”
He believes that decentralized Maker will reduce the impact of pressures on the overall protocol and says, “Then the only option is to limit the attack surface by reducing the RWA risk to the maximum fixed percentage of the total collateral – this requires free floating from the USD.”
It is important to note that over 50% of DAI is collateralized by USDC, as evidenced by Daistat data.Joey Santoro, founder of decentralized finance (DeFi) platform Fei Protocol, suggested canceling Tribe DAO participation after Fuze paid back its victims.
Earlier, a $10 million reward was offered to the Rari Fuze hacker for returning $80 million worth of assets, but Fei Protocol received no response from the attacker.
View full text