With the rise of a new generation of popular crypto projects, MakerDAO decided to respond to the community request and add new options that can be used as collateral. The project listed three new coins, including Compound, Chainlink, and Loopring.
The mentioned three tokens were specifically voted for by the MakerDAO community, which wanted some new alternatives for using as collateral for generating DAI stablecoins. The project responded by adding support for LINK, COMP, and LRC deposits.
The proposal to list said coins originally emerged earlier this year, during the summer. However, voting itself only took place earlier this week.
Why is MakerDAO listing new collateral options?
With the new listings, MakerDAO has listed a total of 11 new DAI vault pairs in 2020 alone. Other cryptos that received support this year include USDT, MANA, PAX, wBTC, KNC, ZRX, TUSD, and USDC.
However, while these tokens were listed partially to provide users with more options, they were also meant to inspire collateralizing more DAI in order to take its price down, as it managed to lose its $1 peg at one point.
The peg instability came to be right as the decentralized finance sector saw a massive surge in yield farming. Meanwhile, Maker’s community believed that lowering the collateralization requirements for the main vault (the USDC vault) would result in a greater amount of DAI reaching the market. USDC is also the most popular of all DAI collateralization options, and there are currently 372 million USDC coins locked within the project’s vaults.
It would appear that the community had the right idea, as DAI price did drop all the way back to $1.01 since the proposal was implemented. With the desire to keep DAI price steady, the project’s founder, Rune Christensen, believes that listing more coins as collateral is the right, and the only way to go.
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