We are announcing that this could be a very big problem for DAI, which ceased to be decentralized when it incorporated USDC into its collateral assets.
Silicon Valley Bank is collapsing, Circle (USDC) has 3.3 billion in the institution, and DAI is losing its peg at 0.93 USD.
https://www.theblock.co/post/219039/makerdao-launches-emergency-proposal-to-limit-usdc-exposure
MakerDAO’s proposal:
Reduce the UNIV2USDCETH-A line by 50 million DAI from 50 million DAI to 0 DAI.
Reduce the UNIV2DAIUSDC-A line by 100 million DAI from 100 million DAI to 0 DAI.
Reduce the GUNIV3DAIUSDC1-A line by 100 million DAI from 100 million DAI to 0 DAI.
Reduce the GUNIV3DAIUSDC2-A line by 100 million DAI from 100 million DAI to 0 DAI.
Increase the PSM-USDP-A line by 550 million DAI from 450 million DAI to 1 billion DAI.
Increase the PSM-USDC-A tin by 1% from 0% to 1%.
Reduce the PSM-USDP-A tin by 0.2% from 0.2% to 0%.
Increase the PSM-USDP-A tout by 1% from 0% to 1%.
Reduce the PSM-USDC-A gap by 700 million DAI from 950 million DAI to 250 million DAI.
Reduce the PSM-GUSD-A gap by 40 million DAI from 50 million DAI to 10 million DAI.
Increase the PSM-USDP-A gap by 200 million DAI from 50 million DAI to 250 million DAI.
Reduce the DIRECT-AAVEV2-DAI bar by 2% from 2% to 0%.
Reduce the DIRECT-COMPV2-DAI bar by 2% from 2% to 0%.
Reduce the GSM Pause Delay by 32 hours from 48 hours to 16 hours.
I doubt they will survive this; something similar happened to them in the past, which is why they added USDC. Now they are removing it.
All very mainstream.
