MakerDAO Votes to Keep USDC as Primary Collateral, Rejects ‘Diversification’ Plan

The MakerDAO community recently voted in favor of keeping the USDC coin as its primary collateral, closing the doors on the diversification plan. The passed measure ends a 1% USDC-to-DAI minting fee that was previously implemented.

The MakerDAO community, which recently voted to keep the USDC coin as their primary collateral, is said to have rejected their diversification plan -- a move that would have allowed a larger number of different collateral types, such as Maker (MKR), BAT, and USDC stablecoins.

The voting session limited the list of potential collateral tokens to USDC and BAT, with USDC having more votes. The passed measure puts an end to the 1% USDC-to-DAI minting fee that was previously implemented.

The decision is part of the MakerDAO governance system, which makes it so that any changes to the governance parameters, such as the acceptable collateral tokens and the associated parameters, has to be voted on by Maker's governance body.

The aim of the diversification plan was to reduce the dependence of MakerDAO on a single collateral asset and increase its exposure to other assets. The inclusion of Maker (MKR) was also part of the plan, as that would have allowed the MakerDAO value to be linked with the MKR token.

The MakerDAO community, however, decided to reject the diversification plan and focus on USDC as its main collateral. The main aim of the decision was to reduce the exposure of MakerDAO to the volatile nature of other assets and to keep their exposure to a reliable collateral asset.

Although the MakerDAO community has voted to keep USDC as their primary collateral, the discussion about diversification hasn't ended. MakerDAO is exploring all potential options for diversifying its collateral, and more updates about the diversification plans can be expected in the near future.

Categories: Stablecoin

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