Proposal to introduce DAI back into the mUSD-Basket.
DAI is one of the most decentralized stable assets we have in the ecosystem. We, as a decentralized protocol should foremost support and use other decentralized protocols in order to reduce the overall risk to mUSD holders coming from centralized parties.
DAI has been removed from the basket due to the frequent loss in peg. Over the last months, the Maker protocol has grown by a huge amount and more DAI than ever are now in circulation The price of DAI is now closer to the peg and has fluctuated much less than in the previous year.
When DAI was part of the mUSD-Basket, it was a very attractive asset for other users to swap, hence generating fees from swaps.
Therefore I believe that DAI would be once again a great addition to the mUSD basket. Further allowing mUSD and the Meta-protocol to grow, generating attractive fees and strengthening decentralization.
- More decentralized assets, less risk
- Potential to grow the total locked value in the basket
- DAI is a popular asset in the ecosystem
- Generating more fees in swaps
- The potential loss of peg once again if the ETH price falls rapidly (but can also generate high fees when demand for DAI is high)
I think this can be a good move for Meta. The risks that were present last year when Meta was very new and the DAI price fluctuated heavily are now a lot lower. The Meta protocol stood the test of time so far and we should embrace decentralization.
Would love to hear your feed! Can you think of any other Pro or Cons?