Leading decentralized finance (DeFi) protocol MakerDAO [MKR] has scheduled an 8 March date to offboard its redundant stablecoin vaults.
This decision came after it obtained approval from members of the protocol’s governance team to do the same. <p lang=«en» dir=«ltr» xml:lang=«en»>This is a final notice to all USDC-A, USDP-A, and GUSD-A users.The USDC-A, USDP-A, and GUSD-A vault types are being offboarded from the Maker Protocol.The offboarding process is currently scheduled to take place with the next Executive Vote on March 8th, 2023.1/ pic.twitter.com/UFADv0gdO9— Maker (@MakerDAO) March 3, 2023 The Risk Core Unit Team of MakerDAO previously published the offboarding parameters, which stated that the USDC-A, USDP-A, and GUSD-A vault types would be liquidated because they were no longer necessary following the introduction of the Peg Stability Module (PSM) .Read MakerDAO’s [MKR] Price Prediction 2023-2024 MakerDAO’s PSM is a system implemented to provide a more stable peg to the US dollar for its stablecoin DAI.
The PSM works by allowing users to exchange DAI for USDC or other fiat-pegged stablecoins at a fixed exchange rate. This exchange rate is designed to maintain a stable peg to the US dollar and is set slightly above $1 to ensure that the price of DAI remains stable.
According to MakerDAO, the offboarding will involve a maximum debt ceiling of zero, a liquidation penalty of zero percent, a flat kick incentive of zero, and a liquidation ratio of 1500% on all three vault types.Read more on ambcrypto.com