On November 11, the MakerDAO Risk Core Unit, a significant component of the MakerDAO governance structure, urgently requested that the collateral requirements for Dai, the stablecoin issued by the decentralized autonomous organization, be altered.
The request was made public on the MakerDAO forum by Primoz, a member of the Risk Core Unit team. The debt cap for MANA was also recommended to be decreased from 10 million to 3 million in a different, earlier proposal. If the proposal is approved, fewer tokens will be available for use as collateral when creating new Dai.
MakerDAO Files Request
If the plan is approved, some of the tokens on this list will either instantly hit the new debt ceiling or be very near to doing so. For instance, the idea would reduce MATIC’s debt ceiling to $10 million from the $14.2 million it currently has supporting Dai. As a result, users wouldn’t be able to deposit MATIC to create a new Dai.
The announcement that FTX, the third-largest cryptocurrency exchange in the world by volume, did not have adequate liquidity to handle all customer withdrawals shocked the cryptocurrency community over the past few days.
This incident set off a crypto market contagion that caused significant losses for several coins. MakerDAO has emerged as the most recent casualty of this outbreak. Debt levels have increased to an uncomfortably high level for the Risk Core Unit team as the value of the collateral supporting Dai has decreased. This might result in reduced debt limitations and greater annoyance for borrowers looking to issue fresh Dai.
