MakerDAO, the organization behind the DAI stablecoin, recently transferred $250 million from its Coinbase (NASDAQ:COIN) Custody account to DAI's peg stability module (PSM) in response to a series of liquidations. The move aims to maintain the dollar peg of the DAI stablecoin. The PSM, a collateral pool that allows users to mint USDC for DAI at a 1:1 ratio, is crucial in arbitraging DAI back to its dollar value.
The transfer was triggered by a dip in PSM's funds below $300 million. Over $100 million was withdrawn from the PSM between Sunday and Today, with these large transfers likely heading towards centralized exchanges, according to a source cited by Blockworks. In response to this drop, Allan Pedersen, CEO of Monetalis, requested SHRM, a trust management firm, via a forum post to refill the PSM.
Pedersen also revealed on MakerDAO's forum that teams are working on automating the PSM using smart contracts. However, they currently rely on trustees and administrators along with legal structures and central exchanges.
PaperImperium from GFX Labs suggested that in extreme scenarios, there could be a potential temporary depegging of DAI. It is important to note that the safety of DAI is fundamentally tied to its USDC reserves.
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