MakerDAO Expands Options with Governance Vote on New Collateral and Liquidation Upgrade

Making Waves: The MakerDAO Governance Vote

Decentralized lending meets innovative governance as MakerDAO has thrown open the doors for community voting on new collateral types. Could this spell more assets being used for minting the beloved stablecoin, Dai? Voting kicked off on a bright Monday morning, and it will last an exciting 14 days. Buckle up, because it’s about to get interesting!

Collateral Candidates: Who’s in the Ring?

The Maker community is buzzing with the suggestion of seven new tokens vying to be eligible collateral for the Maker (MKR). Here are the contenders:

Moss Carbon Credit (MCO2)
Rocket Pool’s staked Ethereum (rETH)
1inch decentralized exchange token (1INCH)
BadgerDAO Sett token (bBADGER)

And that’s not all! Three liquidity provider tokens are also on the chopping block:

SushiSwap’s DAI-USDC LP token
Uniswap’s DAI-PAX LP token
Uniswap’s GUSD-DAI LP token

If the community gives a thumbs-up, these assets could soon back the creation of new Dai, upping the ante for digital asset usage!

A Liquidation Reboot: MIP-45 on the Ballot

While collateral voting is stirring the pot, MakerDAO is also diving into governance with a proposal aimed at revamping its liquidation system—dubbed MIP-45. Liquidations are no small potatoes, as they help maintain Dai’s delicate balance with the US dollar. So, what’s the game plan? The new system promises increased security and predictability, which translates to peace of mind (and sanity) for the community.

Inspired by Black Thursday

The catalyst for this overhaul isn’t just a hunch, but a response to the turbulence of Black Thursday back in March 2020. When Ether (ETH) saw a gut-wrenching drop of nearly 50% in just 30 hours, collateral liquidation left many users in the lurch. Maker’s new approach is designed to prevent such calamities in the future.

What’s on the Table?

Should the proposal find favor, expect to see some nifty modifications:

Increasing the “Emergency Shutdown Threshold” from 50,000 to 75,000 MKR
Revamping the auction model for liquidating vault collateral
Integrating DeFi aggregators to fuel competition among bidders
Enhancing access to broader market liquidity and quick flash loan support

The goal? A more robust and decentralized platform where everyone can play a part!

Polling Participation and Dai on the Rise

As the clock runs down, nearly 26,000 MKR have been pledged to support the MIP-45 proposal. In a twist that would make any investor giddy, MKR prices leaped to over $4,000 in mid-April. Meanwhile, Dai is on a joyride, with its circulation swelling almost 200% in 2023 to a whopping 3.4 billion. Talk about a wild year in the world of decentralized finance!