MakerDAO’s DAI is backed by 23.6% of Circle’s USDC stablecoin. This number reached a staggering 50% in August of last year, raising questions about DAI‘s centralization.
USDC Reduces Support for MakerDAO’s DAI to 23%
DAI is supported by stablecoins and cryptocurrencies like Ethereum, as well as so-called real-world assets. Those real-world assets, or RWAs, are now taking up a growing amount of DAI’s financing as its reliance on USDC decreases.
The remaining 20.8% of DAI’s collateral share consists of Gemini’s GUSD and Paxos’s USDP stablecoin, which expose the asset to the same risks as USDC. However, not everything is centralized. A total of 11.5% of Ethereum (ETH) and 8.8% of Lido’s Staked Ethereum (STETH) are used to underpin the stablecoin.
Data indicates that DAI will still be subject to US laws through businesses like Coinbase and BlockTower even though it is moving away from USDC.
About DAI
The MakerDAO decentralized organization oversees DAI, a stablecoin that is pegged to the dollar and overcollateralized. According to Coingecko, DAI is the most valuable decentralized stablecoin, with a market worth of $4.6 billion.
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