Decentralized lending and stable currency protocol MakerDAO opened a vote on governance to allow new tokens as collateral.
A number of new types of security have been proposed for MakerDAO, which may increase the number of digital assets that can now be used for the DAI stablecoin instrument. Voting began on April 19 and will last for fourteen days.
Seven tokens were introduced as collateral for Creator, including Moss Carbon Credit (MCO2), Ethereum with Rocket Pool rate (rETH), 1 inch Decentralized Exchange Token (1INCH) and BadgerDAO Set token (bBADGER).
Three liquidity provider tokens, or LPs, are promising guarantees, including the SushiSwaps DAI / USDC LP token, the Uniswaps DAI-PAX LP token and the Uniswaps GUSD-DAI LP token.
If approved, these assets can be deposited as security for the creation of a new DAI.
The MakerDAO community is also voting on a proposed update to the filtering system, called MIP-45. Liquidation is made by Maker to maintain the DAI stick of the US dollar by ensuring that all stable tokens created with Maker vaults are adequately supported by collateral, whose proportions vary properly.
The protocol has been working on an update over the past year in response to the crisis in Black Thursday in March 2020, when additional guarantees for millions of users were discontinued after Ethereum’s price fell by almost 50% in 30 hours.
Maker describes the new removal mechanism as an improvement in predictability and protocol security:
“The new filtering system will functionally provide greater security, predictability and decentralization, and facilitate wider participation from the producer environment and the DeFi sector as a whole.”
If the proposal is accepted, a number of changes will be made to its smart contracts, including an increase in the “emergency stop limit” from NOK 50,000 to 75,000. This mechanism is an important security feature that allows the system to close and provides access to security for recovery of Dai and Vault owners.
Other proposed changes include improvements to the auction model to liquidate treasury guarantees, integration of the DeFi aggregator to increase competition among bidders, access to more market liquidity and urgent loan support.
At the time of writing, around 26,000 MKR has been promised. As reported by Cointepegraph, MKR prices crossed $ 4,000 in mid-April.
According to CoinGecko, the amount of Dai in circulation has grown by almost 200% since the beginning of the year, and now NOK 3.4 billion.