Maker Governance, the decentralized autonomous organization behind the Maker Protocol, has made a series of emergency parameter changes aimed at reducing Maker’s exposure to volatile centralized stablecoins and reinforcing the DAI peg. These changes were deployed following an emergency executive vote that took place on Saturday, March 11, 2023.
The changes that have been made to the Maker Protocol include an increase in the USDC PSM USDC→DAI swap fee from 0% to 1%, a reduction in the USDP PSM USDP→DAI swap fee from 0.2% to 0%, an increase in the USDP PSM DAI→USDP swap fee from 0% to 1%, a reduction in the USDC PSM daily mint limit from 950 million DAI to 250 million DAI, and a reduction in the GUSD PSM daily mint limit from 50 million DAI to 10 million DAI.
Additionally, Maker Governance has increased the USDP PSM daily mint limit from 50 million DAI to 250 million DAI, increased the USDP PSM debt ceiling from 450 million DAI to 1 billion DAI, reduced the UNIV2USDCETH-A debt ceiling from 50 million DAI to 0 DAI, reduced the UNIV2DAIUSDC-A debt ceiling from 100 million DAI to 0 DAI, reduced the GUNIV3DAIUSDC1-A debt ceiling from 100 million DAI to 0 DAI, and reduced the GUNIV3DAIUSDC2-A debt ceiling from 100 million DAI to 0 DAI.
Maker Governance has also reduced the DIRECT-AAVEV2-DAI target borrow rate from 2% to 0% and reduced the DIRECT-COMPV2-DAI target borrow rate from 2% to 0% to deactivate D3M.
The rationales behind these changes are varied. The increase in the USDC PSM USDC→DAI swap fee aims to discourage swapping USDC for DAI via the PSM. The USDP PSM changes seek to enable USDP to provide liquidity in case DAI goes above the peg and limit USDP swaps for riskier stablecoins. The GUSD PSM changes aim to limit potential losses due to contagion risk.
Read more: https://azcoinnews.com/maker-protocol-deploys-parameter-changes-to-reinforce-dai-peg.html
