MakerDAO Splits DAI Stablecoin to Balance Decentralization and Usability
MakerDAO, the creator of the DAI stablecoin, plans a significant split. DAI, currently valued at over $5 billion with an 8% saving rate, will be divided into 'NewStable' and 'PureDAI'. This move aims to address the stablecoin dilemma, balancing decentralization and usability.
DAI, a hybrid stablecoin with about 36% Ether and over 50% 'real world assets' as collateral, has been grappling with the stablecoin dilemma. It struggles to maintain its dollar peg while keeping up with competitors like USDC and USDT. The upcoming split seeks to resolve this.
NewStable, managed by the NewStable DAO, will integrate with traditional finance and comply with regulations, including the option to freeze deposits. Meanwhile, PureDAI will strictly adhere to decentralization principles, potentially deviating from the dollar's value. This experiment in money creation mimics bank money creation but with higher transparency and equity ratio. Current DAI dollars can be exchanged for the new coins, which will gradually replace existing DAI in MakerDAO services.
The DAI split into NewStable and PureDAI is a strategic move to tackle the stablecoin dilemma. While NewStable aims for regulatory compliance and traditional finance integration, PureDAI sticks to decentralization ideals, potentially offering an interesting but risky independent value unit. This development in the decentralized stablecoin landscape is worth watching.
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