The recent sanctioning of Tornado Cash has forced some platforms to take critical decisions to offer more security. Co-Founder of MakerDAO, Rune Christensen, explained to the community about the de-pegging plans of the native token from USD Coin (USDC). He explained that free-floating Dai may be the only option for the decentralized autonomous organization (DAO).
MakerDAO Sets To Free Float Dai To Improve Security
In a recent blog post, the co-founder stated that Maker’s security will only be improved if it prepares to free float Dai, adding that the token doesn’t have any other better option at the moment. Christensen also talked about miscalculations on the risks linked to risk-weighted assets (RWA).
He added that in some cases there could be a direct crackdown on crypto without any prior notice. The situation could lead to damaging consequences and the inability to recover from it even among innocent users. The situation violates two major assumptions that can be used to understand RWA risk, which makes authoritarian threats a lot more worrisome.
Christensen also suggested that the right part to follow is the path of decentralization. He was suggesting this option while revealing the protocol’s inability to comply with regulators. Christensen added that decentralization is the main purpose and intent of Dai.
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Decentralizing Maker Will Reduce Impact Of Crackdowns
He also noted that the decentralization of Maker will minimize the impact of crackdowns on the protocol.
As a result, the most obvious choice is to reduce the attack surface by cutting down on the RWA exposure to a maximum fixed percentage of the total collateral. This will need the de-pegging of the token from USDC, according to Christensen.
The impact will be felt across the community since more than 50% of DAI are presently collateralized by USDC, according to daistats data.
Founder of Fei Protocol (a decentralized platform), Joey Santoro recommended that participation from Tribe DAO be revoked after reimbursing Fuze victims. This comes after the hacking of Rari Fuze, with $80 million worth of assets stolen. The protocol offered $10 million as a bounty but Fei Protocol received no response from the hacker.
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