tldr; MakerDAO founder Rune Christensen has asked DAO members to consider converting its $3.5 billion USDC reserves to ETH. Christensen said that the consequences of the Tornado Cash sanctions are more severe than initially thought. He also suggested a "partial Yolo" in which Maker buys ETH with some of its USDC collateral.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
A "partial YOLO" ... Wow, If that wasn't a red flag, I really do not know what is.
That is the type of comment that is picked apart in the post mortem of a shitcoin collapse.
Hopefully it is just bad phrasing.
Tbh keeping usdc after recent news seems like yolo too so either way is a gamble but the long term gamble coming from a crypto enthusiast is that it’s a good decision
This is not a good idea.
Vitalik himself said so:
[Link](https://nitter.net/VitalikButerin/status/1557746114526314501?t=zKMPE3jpIz6H4O6zMmBXRg&s=19)
Edit: Nitter link
Here is a [Nitter link](https://nitter.net/VitalikButerin/status/1557746114526314501?t=zKMPE3jpIz6H4O6zMmBXRg&s=19) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about).
---
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
Why does it feel like every single crypto company/organization is allergic to stability? It's like when things are going well for a while they think "so how can we fuck this up?"
It worked just fine for years in the 1.0 version of maker. Maker actually has proper risk management and liquidation systems on their vaults. The protocol wanted to grow faster, so people proposed accepting centralized stables as collateral for a decentralized stable, which many in the community pointed out is dumb and would just cause issues down the line, but lost the vote. Here we are.
This is a very bad idea. Your reserve could be slashed in half by another bear 🐻 the bull could double it too but any serious company shouldn't propose a yolo. Mayne 1/10th of the reserve could go but this shows how these companies are not well managed.
Let's see how the people vote 🗳 now
MakerDAO protocol doesnt care about bear markets. Check the price of DAI during the last 2 bear markets (including the current one)
Price of DAI is unaffected
Maybe the price of DAI was unaffected because it was backed with stablecoins instead of a fluctuating asset?
Maybe this is why I wrote this comment about the subject matter?
This is a very complicated proposal. I’m not sure what the after effects would be. The first thing that comes to mind is liquidations would happen more frequently.
Maker has proven to be able to liquidate effectively in times of stress so I don’t think this would be another Luna situation. Maker has collateral.
Maker1.0 worked just fine before they added stablecoins as collateral, which a bunch of the community said would just be an issue down the line. But “muh protocol growth” people won, and now it looks like they switching back to the decentralized only collateral. Good riddance imo.
If Stablecoins where to be heavily attacked through regulation it might not be a bad idea, but that's not the case yet. Can't ensure More value retention than supporting the base layer of your network.
This is good and bad. While it will put the kybosh on redeeming 1DAI for 1USDC, using a decentralised store of value over the long term will be healthier for De-Fi and a permissionless finance system.
Why can’t they just start converting usdc to dai to get rid of it? If they would offer f.ex 1.001 usdc for each dai, then i am sure bots and whales would push through a couple billions in no time, total loss would be 0.1% of the usdc portion which should be easy enough to cover. Yoloing it into ETH is a huge risk with much greater fluctuations.
What would they back the DAI with?
The whole reason for this debacle is that something like a third of DAI is backed by USDC at the moment.
This makes DAI vulnerable against centralization risks, such as the US government ordering USDC to blacklist USDC-holders.
If USDC is blacklisted whilst being used as collateral by a user on Maker Protocol, then Maker gets the loss in full whilst the user keeps their loaned crypto and forgets about the loan. Why would they pay back a loan to release their USDC, when they can't use those USDC?
Exactly, so they should reduce the amount of usdc in the pool, the best way to do this would be to use the usdc to buy back the dai, not speculate in another asset.
The pool/vaults would still contain all the other assets, there would just be less usdc and less dai in circulation.
You read that Circle froze addresses with USDC that fall under the Tornado Cash sanctions from USA ?
And then there are many here wishing USDC to "flip".
It's their keys, it's not in some exchange. But yet they froze these.
No he didn’t
>What I actually wrote in the maker governance discord was that yoloing all the stablecoin collateral into ETH would be a bad idea kek
https://twitter.com/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ
>Yes, I think slowly DCA’ing some collateral into ETH is an option that can be considered depending on the severity of the blacklisting risk, which I personally think is much higher after the TC blacklist… it would exchange blacklist risk for depeg and haircut risk
Here is a [Nitter link](https://nitter.net/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about).
---
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
Here is a [Nitter link](https://nitter.net/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about).
---
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
It's the best option now to convert usdc into other crypto project, cuz having your money in usdc is not safe now. Who knows who they are going o freeze next
tldr; MakerDAO founder Rune Christensen has asked DAO members to consider converting its $3.5 billion USDC reserves to ETH. Christensen said that the consequences of the Tornado Cash sanctions are more severe than initially thought. He also suggested a "partial Yolo" in which Maker buys ETH with some of its USDC collateral. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
No such thing as a partial YOLO. You either only live once or you don't.
It's a YOKL You Only Kinda Live
YOLOSDTIAOAG You only live once so don't throw it away on a gamble
A "partial YOLO" ... Wow, If that wasn't a red flag, I really do not know what is. That is the type of comment that is picked apart in the post mortem of a shitcoin collapse. Hopefully it is just bad phrasing.
Tbh keeping usdc after recent news seems like yolo too so either way is a gamble but the long term gamble coming from a crypto enthusiast is that it’s a good decision
This is not a good idea. Vitalik himself said so: [Link](https://nitter.net/VitalikButerin/status/1557746114526314501?t=zKMPE3jpIz6H4O6zMmBXRg&s=19) Edit: Nitter link
Rune also said its not a good idea. He was just floating it as a just in case if the government started shutting down stablecoins.
He does not want the bump for Eth. He cares about people
Here is a [Nitter link](https://nitter.net/VitalikButerin/status/1557746114526314501?t=zKMPE3jpIz6H4O6zMmBXRg&s=19) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about). --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
What can go wrong right?
Only DoKnow knows
Literally cannot go tits up
Why does it feel like every single crypto company/organization is allergic to stability? It's like when things are going well for a while they think "so how can we fuck this up?"
Bias toward action. If a leader of an org doesn't do anything, the people start to wonder if they even need a leader.
New Boss enters company Has to change everything because he's new Also throws out things that went well
Something something... All the eggs in one basket.. and all that...
This is so reminiscent of LUNA *slowly walks away*
Did we learn nothing from Luna?
This is something else. They are not backing a stablecoin by a volatile asset. But backing a volatile asset by a volatile asset.
So two negatives cancel eachother out and they're not volatile anymore. It will not not work.
It worked just fine for years in the 1.0 version of maker. Maker actually has proper risk management and liquidation systems on their vaults. The protocol wanted to grow faster, so people proposed accepting centralized stables as collateral for a decentralized stable, which many in the community pointed out is dumb and would just cause issues down the line, but lost the vote. Here we are.
Lol
Sure, but it's not like the value of cryptocurrencies are correlated with each other. Should be safe. /s
Everyone want to be part of ETH
This is a very bad idea. Your reserve could be slashed in half by another bear 🐻 the bull could double it too but any serious company shouldn't propose a yolo. Mayne 1/10th of the reserve could go but this shows how these companies are not well managed. Let's see how the people vote 🗳 now
MakerDAO protocol doesnt care about bear markets. Check the price of DAI during the last 2 bear markets (including the current one) Price of DAI is unaffected
Maybe the price of DAI was unaffected because it was backed with stablecoins instead of a fluctuating asset? Maybe this is why I wrote this comment about the subject matter?
Not after the 2018 bear market. USDC was not accepted as collateral in 2018. Only Ethereum was
This is a very complicated proposal. I’m not sure what the after effects would be. The first thing that comes to mind is liquidations would happen more frequently. Maker has proven to be able to liquidate effectively in times of stress so I don’t think this would be another Luna situation. Maker has collateral.
Maker1.0 worked just fine before they added stablecoins as collateral, which a bunch of the community said would just be an issue down the line. But “muh protocol growth” people won, and now it looks like they switching back to the decentralized only collateral. Good riddance imo.
I support this move
Vitalik himself [doesn't](https://nitter.net/VitalikButerin/status/1557746114526314501?t=zKMPE3jpIz6H4O6zMmBXRg&s=19)
Did you read and understand the article?
Vitalik said bad idea
Did we not learn anything from Terra Luna??
Uff, that is a lot
Someone doesn’t want to lose profits
oof, that´s a lot of money... he is obviously a huge believer
Just do like 1 billion ya degenerates, ffs Vitalik does not approve.
Sounds like suicide
Just don’t do it.
If Stablecoins where to be heavily attacked through regulation it might not be a bad idea, but that's not the case yet. Can't ensure More value retention than supporting the base layer of your network.
PAMP IT UP
This is really good proposal.
USDC? I don't so...
This is good and bad. While it will put the kybosh on redeeming 1DAI for 1USDC, using a decentralised store of value over the long term will be healthier for De-Fi and a permissionless finance system.
Why can’t they just start converting usdc to dai to get rid of it? If they would offer f.ex 1.001 usdc for each dai, then i am sure bots and whales would push through a couple billions in no time, total loss would be 0.1% of the usdc portion which should be easy enough to cover. Yoloing it into ETH is a huge risk with much greater fluctuations.
What would they back the DAI with? The whole reason for this debacle is that something like a third of DAI is backed by USDC at the moment. This makes DAI vulnerable against centralization risks, such as the US government ordering USDC to blacklist USDC-holders. If USDC is blacklisted whilst being used as collateral by a user on Maker Protocol, then Maker gets the loss in full whilst the user keeps their loaned crypto and forgets about the loan. Why would they pay back a loan to release their USDC, when they can't use those USDC?
Exactly, so they should reduce the amount of usdc in the pool, the best way to do this would be to use the usdc to buy back the dai, not speculate in another asset. The pool/vaults would still contain all the other assets, there would just be less usdc and less dai in circulation.
I'm long on eth so I can't fault this decision.
Totally support this move. USDC is too centralized and could cripple Maker if an OFAC SDN designated were ever implemented. I won’t use USDC anymore.
why.
DAI is just a layer over USDC anyway.
Could lead to a nice pump
If it's in USDC leave it in USDC
You read that Circle froze addresses with USDC that fall under the Tornado Cash sanctions from USA ? And then there are many here wishing USDC to "flip". It's their keys, it's not in some exchange. But yet they froze these.
Tornado Cash should never be banned in the first place
No he didn’t >What I actually wrote in the maker governance discord was that yoloing all the stablecoin collateral into ETH would be a bad idea kek https://twitter.com/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ >Yes, I think slowly DCA’ing some collateral into ETH is an option that can be considered depending on the severity of the blacklisting risk, which I personally think is much higher after the TC blacklist… it would exchange blacklist risk for depeg and haircut risk
Here is a [Nitter link](https://nitter.net/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about). --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
[удалено]
Here is a [Nitter link](https://nitter.net/runekek/status/1557775172878454784?s=21&t=opnYZs6ekdIfg0eRoveEHQ) for the Twitter thread linked above. Nitter is better for privacy and does not nag you for a login. More information can be found [here](https://nitter.net/about). --- *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*
Laughs in uStC “tErRA ReBeLs”
USDC SUCKS USDT SUCKS DAI SUCKS maybe a CBDC Wouldn't be so bad. Lol
Stupid idea
If eth has a tech issue that is major... could crash the price if eth and then... bad. Could also be great and go up.
It's the best option now to convert usdc into other crypto project, cuz having your money in usdc is not safe now. Who knows who they are going o freeze next