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MakerDAO transfers $250 million from Coinbase to secure DAI peg

2023-11-01 15:52 Wednesday

After DAI’s USDC reserves (which need to be at least over $200 million to be considered safe) came close to falling below $60 million earlier today, MakerDAO moved $250 million from Coinbase to DAI’s Pegged Stability Module (PSM) for use in maintaining the peg. .

It is reported that PSM is a collateral pool that allows users to mint USDC in exchange for DAI at a 1:1 ratio and arbitrage DAI back to the US dollar.

If PSM’s reserves are depleted, the price of DAI could go above or below $1.