MakerDAO Reduces USDC Collateral

On March 13, MakerDAO’s DAO protocol experienced an all-time high, with nearly 4.4 billion USD Coin (USDC) locked in PSM mechanisms.

However, since then, the amount of stablecoins deposited into the service has dipped drastically, currently standing at just over $521 million according to recent data.

Subsequently, the dominant share of funds has fallen on various variations of “wrapped” Ethereum – WETH and WSTETH – now combining for 69%. The total volume of assets blocked in the protocol is now estimated at about $6.3 billion.

In response, the MakerDAO community launched an emergency vote on a proposal to limit the impact of USDC issuances on the DAI stablecoin. The new changes took effect on March 13.

According to Sébastien Derivaux, an analyst at MakerDAO’s strategic finance department, the project has finally found ways to bring in revenue from these unproductive assets. The project’s roadmap was first presented in June, when there was a marked increase from originally $500 million to $1.2 billion dollars of US Treasury bonds in reserves.