By George Ward
The MakerDAO community has recently voted and decided to keep USDC as a major reserve for its DAI token. 79% of the voters voted in favor of the decision, asking that the USDC remains the key reserve. However, 20% asked that the DAO community diversify its stablecoin reserves.
MarkerDAO Community Overlooks USDC Recent Depegging
Meanwhile, the latest poll comes amid the ongoing crisis in the US banking sector. For instance, Silicon Valley Bank (SVB), the bank which held part of USDC issuer Circle’s reserve funds filed for chapter 11 bankruptcy.
The SVB shutdown caused widespread speculation about the market’s future and raised concerns about the stability of USDC in the stablecoin market. During the poll discussion, the community described the market’s condition resulting from bank losses as having some remaining risks and the potential for more bank closures and losses on uninsured bank deposits.
“The government has not made a clear commitment to providing support for deposits in other institutions apart from Signature and SVB,” the community added.
Since the weekend, stablecoin issuers have become more cautious, as most of their bank deposits are now in institutions many consider “too big to fail.”
MarkerDAO Starts 2023 On A Good Note
According to reports, Celsius had an exposure of $3.3 billion to the now-bankrupt SVB. After Circle confirmed the news on Twitter, USDC’s market capitalization plummeted by $6 billion.
The stablecoin dropped to $0.91 but recovered some of its value, increasing by 7% and returning closer to $1. Tether (USDT) Circle’s rival, benefited from the brief de-pegging as several crypto holders converted their USDC to USDT.
Despite the setback, it appears that the USDC stablecoin has withstood the collapse of SVB bank. This year, Maker has been making headlines for various reasons.
One notable development is the substantial increase in the token’s value since the beginning of the year due to recent developments. One of these developments is Maker’s announcement of its competitor to Aave, known as Spark Protocol.
This protocol aims to enhance MakerDAO’s capabilities by providing a liquidity market for the lending and borrowing of scalable crypto assets at both fixed and variable rates. Additionally, Maker is exploring the possibility of expanding its treasury bond investments to $1.25 billion.