- MakerDAO may soon remove $390 million in Gemini’s GUSD stablecoin from its reserves.
- The DAO is currently voting to reduce the maximum amount of GUSD held in the Maker’s DAI stablecoin reserve to $110 million.
- MakerDAO reserves currently account for approximately 88% of total GUSD supply.
MakerDAO, a decentralized lending platform and DAI stablecoin issuer, may soon sell $390 million in the Gemini Dollar (GUSD) stablecoin issued by the Gemini cryptocurrency exchange.
of Peg Stabilization Module (PSM) is up for vote The maximum amount of GUSD by the MakerDAO community will drop from $500 million held in Maker’s DAI stablecoin reserve to just $110 million.
At the time of writing, with less than 24 hours left to vote, about 94% of those who voted support the GUSD cut proposal.
Future of the Gemini Dollar (GUSD)
Given that Maker controls about 88% of the stablecoin’s $568 million circulating supply, the vote will have a significant impact on GUSD’s future. indicators are relatively stable. Makers hold cryptocurrencies such as Circle’s USDC and GUSD in their own reserves and invest in physical assets such as bonds to underpin the $4.5 billion value of DAI.
MakerDAO will receive a 2% annual fee from Gemini for using the token as a backup asset. Gemini is the issuer of his GUSD. However, the proposal argued that the platform could benefit from better earnings opportunities by investing in short-term US Treasuries, which currently offer yields of around 5%.
of suggestion situation:
“By reducing our exposure to GUSD, we may be able to improve our capital efficiency by funding opportunities that generate higher returns.”
The vote to reduce GUSD from DAI’s reserves came just days after the DAO voted to remove the Pax Dollar (USDP) stablecoin from MakerDAO’s reserves.
