MakerDAO submits proposal to resolve exposure of 3.1B USDC
MakerDAO, the issuer of the U.S. dollar-pegged DAI stablecoin, asked for a “immediate executive proposal to limit threats to the protocol.” MakerDAO said it had numerous collaterals “exposed to USDC tail risk” in light of the unprecedented depegging of the USD Coin (USDC $0.92) stablecoin that began on March 10. DAI is now secured by […]
Exchanges suspend USDC conversions as dollar peg fumbles
Crypto exchanges are showing cautionary signs after Circle disclosed how much of its USDC stablecoin is backed by reserves held by Silicon Valley Bank. Due to the closure of Silicon Valley Bank (SVB) on March 10, Circle, the company behind the USDC stablecoin, is under a lot of pressure. Recently, Circle revealed that SVB held […]
Aavegotchi bonding curve closes on exact day of DAI depeg
Aavegotchi closed the bonding curve defining the exchange rate between its namesake (GHST) and the DAI U.S. dollar-pegged stablecoin. The DAI stablecoin depegged on that same day as a result of the continued destabilization of the Dollar Coin, which was brought on by $3.3 billion in stalled stablecoin collateral deposits owing to its issuer Circle […]
Circle’s exposure to US banks may exceed $9 billion
A number of US banks, including Silvergate, Silicon Valley Bank, and Bank of New York Mellon, hold Circle’s reserves. According to Circle’s most recent audit report from January, the company’s exposure to the US banking system is close to $9 billion. USD Coin (USDC $0.92) is Circle’s primary product. The country’s regulated financial institutions, such […]
Binance switches to multiple stablecoins, ends conversion policy
Binance suspends its BUSD auto-conversion for new deposits of the USDC, USDP, and TUSD stablecoins amid Circle’s Dollar Coin (USD) depeg. On Saturday, Changpeng “CZ” Zhao, CEO of Binance, said that the company would no longer maintain its Binance USD (BUSD) Auto-Conversion policy, which had been in place since last September. Surprisingly, the action was […]