- Decision passed unanimously
- This is half of the total USDP supply on the market
- The reason for this decision was the low liquidity of the asset and the lack of fees for its storage in PSM
- Paxos had previously offered to introduce deductions in exchange for increasing the USDP share
- But the agreement never got a follow-up, likely due to the company’s problems in the U.S.
Yesterday, June 1, a vote on a proposal to remove Paxos USD (USDP) entirely from the MakerDAO Peg Stabilization Module (PSM) ended. The decision was unanimous.
He was nominated by Monet Supply. The firm explained its decision by the fact that USDP has limited liquidity in the open markets and is “less useful” for the promotion of DAI.
As we explain, MakerDAO receives royalties from other stablcoin issuers, such as Gemini. The company pays for MakerDAO to retain a certain amount of assets in PSM.
In January of this year, Paxos put forward a proposal to expand the collaboration. Specifically, it included that very “royalty” of $29 million annually for increasing USDP’s stake in PSM to $1.5 billion.
In their proposal, Monet Supply said the agreement never got any follow-through.. The reason for this may be the problems of Paxos in the United States.</nbsp;
It is interesting that MakerDAO held half of the total USDP supply in the market. “Drainage” of such volume of tokens will definitely affect the stability of the “coin. Paxos has not yet commented on the situation.