When MakerDAO’s [MKR] co-founder introduced the Endgame Plan for the protocol, community members were hopeful of a change in decision making and governance mechanisms. It has been more than a month now, and a new report by Crypto Risk Assessments pointed out the repercussions that this plan may present. This further included the threat this may have to Curve Finance [CRV].
The Endgame plan was introduced by MakerDAO co-founder Rune Christensen. The plan was introduced to further decentralize the protocol and make it more resilient to regulatory agencies.
“The Endgame Plan is an ambitious initiative that aims to create a finite roadmap for MakerDAO that step by step leads to a predetermined, immutable end state many years out in the future, while significantly improving governance dynamics and tapping into the raw power of modern DeFi innovation.” the initial proposal read.
The initial plan also laid out plans for DAI, a stablecoin on the Ethereum [ETH] blockchain. The plan outlined that it will maintain a 1:1 ratio with USD for at least three years. Thus, maintaining that peg if the protocol achieves and maintains 75% decentralized collateral.
Now in this ambitious plan, there was something called the DAI free float approach. Christensen believed that in order to limit the threats to MakerDAO’s RWA collateral, it was necessary to allow the free floating of DAO.
RWA collateral was basically the minimum amount of capital/assets to be held by the protocol in order to ensure solvency. Free floating DAI was a controversial but likely possibility. What made it controversial was its potential impact on liquidity pools like 3pool, meta pools etc.
The report by Crypto Risk Assessments also stated that if the price of DAI dropped,
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