MakerDAO decreases GUSD in DAI reserve.

• MakerDAO may soon sell $390 million worth of Gemini Dollar (GUSD) stablecoin from its reserves.
• The DAO is currently voting to reduce the maximum amount of GUSD held in Maker’s DAI stablecoin reserve from $500 million to $110 million.
• MakerDAO’s reserve currently holds approximately 88% of the total GUSD supply.

MakerDAO, a decentralized lending platform and issuer of DAI stablecoin, is considering selling $390 million worth of Gemini Dollar (GUSD) stablecoin, which is issued by the Gemini cryptocurrency exchange.

The MakerDAO community is voting on the Peg Stability Module (PSM) to reduce the maximum amount of GUSD held in Maker’s DAI stablecoin reserve from $500 million to $110 million.

At the time of this writing, approximately 94% of those who have voted support the proposal to lower GUSD, with less than 24 hours remaining until the vote concludes.

Gemini Dollar (GUSD) future

Since MakerDAO controls around 88% of the stablecoin’s $568 million circulating supply, the vote will have a significant impact on the future of GUSD, whose metrics have been relatively stable. Maker supports the value of $4.5 billion DAI by holding cryptocurrencies like Circle’s USDC and GUSD in its reserve, as well as investing in physical assets like bonds.

• Binance CEO denies manipulating market to boost BNB.
• Binance emergency fund shrinks due to SEC legal pressure.
• Binance wants to cancel its registration for cryptocurrency services in Cyprus.

MakerDAO receives a 2% annual reward from Gemini for using GUSD as a reserve asset, as Gemini is the issuer of GUSD. However, the proposal argues that by investing in short-term US Treasuries, which currently offer a yield of around 5%, the platform could benefit from better revenue opportunities.

The proposal states:

“Reducing GUSD exposure could allow for better capital efficiency by deploying funds into higher revenue-generating opportunities.”

The vote to reduce GUSD from DAI’s reserve comes just days after the DAO voted to remove Pax Dollar (USDP) stablecoin from its reserves.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!