Maker Raises Staked Ethereum Limit to Reduce Reliance on USDC
Maker, the DeFi protocol behind the DAI stablecoin, anounced that it has doubled its debt ceiling on its staked Ethereum (stETH) vault. The world‘s largest decentralized-finance app, Maker is working to reduce its reliance on centralized stablecoins such as Centre’s USD Coin (USDC)—especially after the mid-August Tornado Cash scandal. Staked Ethereum is a crypto token representing one unit of Ethereum that has been deposited or locked up in anticipation of the merge, the networks upcoming upgrade. Decentralized lending platforms provide direct loans to businesses and individuals without intermediaries, while also providing interest to other parties who supply capital. Staked Ethereum is a staking token issued as reward to lenders of Ethereum on staking services such as Lido Finance, Coinbase, Kraken, and Binance, among others. Maker is looking to unwind USDC‘s influence and the proportion the token holds as collateral to DAI, the crypto lending service’s own decentralized stablecoin pegged to the US dollar. By approving Maker DAOs governance proposal sa raise the debt ceiling to $200 million, the protocol expects to see more stETH deposited against DAI, reducing its reliance on USDC. Tornado Cash repercussions Ang Kagawaran ng Treasury ng US sanctioned ang crypto mixer Buhawi Cash in August, making the protocol and associated smart contracts