MakerDAO’s Total Collateralization Reaches 154% with $8.26 Billion in Collateral Backing 5.38 Billion DAI
Maker Protocol, one of the leading decentralized finance (DeFi) platforms, recently tweeted some promising news regarding the stability of its stablecoin, DAI. According to the tweet, the total collateralization of the system is currently at 154%, with $8.26 billion worth of collateral backing 5.38 billion DAI.
The tweet also revealed that no liquidations have been triggered during the last week, indicating that the system is working smoothly and as expected. Maker Protocol’s code is law for DAI stability, and the PSM (Peg Stabilization Module) is working smoothly, with reserves standing at $3.15 billion backing 3.15 billion DAI at 100% collateralization.
Total collateralization of the system is at 154% with $8.26 billion worth of collateral backing 5.38 billion DAI.
No liquidations have been triggered during the last week.
System is working as expected, and always has been.
Maker Protocol’s code is law for DAI stability. pic.twitter.com/zmuaR2XFXG
— Maker (@MakerDAO) March 11, 2023
This news comes at a time when the stablecoin ecosystem is facing some challenges due to the depegging of USD Coin (USDC) from the U.S. dollar. The depegging was caused by a subsequent sell-off after Silicon Valley Bank (SVB) did not process $3.3 billion of Circle’s $40 million transfer request. Given USDC’s collateral influence, major stablecoin ecosystems followed suit in depegging from the U.S. dollar.
As a result, Dai (DAI), a stablecoin issued by MakerDAO, lost 7.4% of its value due to USDC’s depegging. However, the stablecoin has since recovered and is trading around the $0.934 mark at the time of writing.
It’s worth noting that as of June 2022, $6.78 billion worth of DAI supply was collateralized by $8.52 billion worth of cryptocurrencies, with USDC representing 51.87% of DAI’s collateral, worth $4.42 billion. Other prominent cryptocurrencies include Ether (ETH) and Pax Dollar (USDP) at $0.66 billion and $0.61 billion, respectively.
MakerDAO’s tweet provides some reassurance to the DeFi community that the platform is robust and functioning as expected, despite the challenges facing the stablecoin ecosystem. With Maker Protocol’s code being law for DAI stability, and the PSM working smoothly, investors and traders can check the platform’s data transparently in real-time. Overall, the tweet highlights the importance of transparency and robustness in the DeFi ecosystem, which is essential for building trust and confidence in the platform.
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