- The sanctions are “a lot more serious than I first thought,” MakerDAO co-founder Rune Christensen said
- The risk of uprooting and moving collateral from USD to ETH may overweigh the consequences of DAI’s depeg
MakerDAO is weighing a Hail Mary move to replace what backs its decentralized stablecoin DAI.
Following the US Treasury’s sanctioning of crypto mixer Tornado Cash, MakerDAO co-founder Rune Christensen wants to uproot USDC from the protocol’s massive $10.9 billion crypto treasury.
Earlier this week, authorities added Tornado Cash’s blockchain addresses to the Office of Foreign Assets Control (OFAC) blacklist, making it illegal to interact with those particular addresses.
Many of the newly banned addresses were USDC contract addresses tied to Tornado Cash, and the stablecoin’s issuer Circle toed the US line almost immediately by adding dozens to its own blacklist. Circle’s move automatically rendered any USDC controlled by those addresses — collectively ປະມານ $75,000 — moot, practically valueless.
On MakerDAO’s official Discord channel, Christensen said the consequences of the Tornado Cash sanctions are “a lot more serious than I first thought.”
Even though DAI would very likely depeg from the US dollar if MakerDAO ditches USDC, the risk is “acceptable,” Christensen said.
Source: https://blockworks.co/makerdao-plans-to-yolo-usdc-into-eth/