MakerDAO looks to limit volatility after USDC troubles pushed some users to DAI

Quick Take

  • The supply of USDC shrank by 5% while the supply of DAI shot up, increasing to 6.3 billion from 5.1 billion since March 10.
  • USDC holders turned to DAI during market panic caused by Circle’s exposure to Silicon Valley Bank.
  • MakerDAO, in response, is proposing to reduce the amount of DAI that can be minted with other centralized stablecoins to limit any potential impact from USDC price swings.

MakerDAO, which manages the "decentralized" dai stablecoin, launched an emergency proposal to reduce the amount of DAI that can be minted with other centralized stablecoins after concerns over C