MakerDAO trims reliance on USDC as collateral

The DeFi project MakerDAO has sharply reduced its share of USD Coin (USDC) in the total collateral for borrowing DAI.

On March 13, the figure reached a peak of $4.4 billion of USDC locked in the Peg Stability Module (PSM). At the time of writing, the amount of stablecoins deposited in the service barely exceeds $521 million.

The dominant share is held by various versions wrapped Ethereum. The combined WETH and WSTETH total exceeds 69%. The total value of assets locked in the protocol stands at about $6.3 billion.

Earlier, the MakerDAO community launched an emergency vote on a proposal to limit the influence of USDC issues on the decentralized stablecoin DAI. Changes took effect on March 13.

“[Reserves] in USDC are declining, as we finally have ways to generate income from these unproductive assets,” said Sebastien Derivo, an analyst in MakerDAO’s Strategic Finance division, to The Block.

In June, the platform increased the volume of US Treasury bonds in reserves from $500 million to $1.2 billion. The project took the first step in this direction in October 2022.

Earlier in May, the MakerDAO team unveiled a roadmap with a focus on AI.