MakerDAO Weighs Ditching $390M of Gemini Dollars from DAI Reserve

Decentralized concern (DeFi) lending level and stablecoin issuer MakerDAO could soon ditch $390 cardinal of crypto speech Gemini’s GUSD stablecoin from its reserves.

The protocol’s assemblage is presently voting connected a proposal to alteration the maximum magnitude of GUSD to $110 cardinal from $500 cardinal held successful Maker’s DAI stablecoin reserve, called the Peg Stability Module (PSM).

Less than 24 hours earlier the vote’s end, astir 94% of those who person already voted are successful favour of the connection to chopped GUSD. However, a akin proposal successful January saw a precocious unreserved of votes successful favour of retaining GUSD, pushing that broadside to a razor-thin 50.85% majority.

The ballot is important for GUSD’s future, arsenic Maker holds astir 88% of the stablecoin’s $568 cardinal circulating supply. Maker backs the worth of the $4.5 cardinal DAI by holding cryptocurrencies specified arsenic Circle’s USDC and GUSD successful the reserve, and progressively by investing successful real-world assets similar authorities bonds.

Gemini – the crypto speech founded and tally by Tyler and Cameron Winklevoss and the issuer of GUSD – pays a 2% yearly reward to MakerDAO for utilizing the token arsenic a reserve asset. The proposal, however, argued that the level could bask amended gross opportunities, for illustration by investing successful short-term U.S. Treasuries, which presently connection astir a 5% yield.

“Reducing GUSD vulnerability could let for amended superior ratio by deploying funds into higher gross generating opportunities,” the connection said.