In light of recent discussions about de-pegging its native token from USD Coin (USDC) during Tornado Cash sanctions, MakerDAO co-founder Rune Christensen reached out to the community to explain why free-floating DAI might be the only option for a DAO (Dao).
in his blog postal, “The Road to Compliance and the Road to Decentralization: Why Maker Had to Prepare for Free Float Dai,” Christensen disclosed miscalculating the risks associated with risk-weighted assets (RWA). He says:
“A physical blow to cryptocurrencies can happen without prior notice, with no possibility of recovery even for legitimate, innocent users. This violates two core assumptions we use to understand risk in risk-weighted assets, making The authoritarian threat is more serious.”
While exposing the protocol’s inability to comply with regulators, Christensen suggested that “we must choose the path of decentralization, which has always been Dai’s intent and purpose.”
He believes that decentralized Maker will reduce the impact of a strike on the entire protocol, adding: “The only option is to limit the attack surface by exposing RWA to a maximum fixed percentage of total collateral — which needs to float freely from USD. “
Notably, over 50% of DAI is currently collateralized by USDC, as dastats proves data.
related: MakerDAO should ‘seriously consider’ decoupling DAI from USD – Founder
Joey Santoro, founder of decentralized finance (DeFi) platform Fei Protocol, has suggested withdrawing the Tribe DAO’s participation after compensating Fuze victims.
Previously, the Rari Fuze hacker received a $10 million bounty for returning $80 million worth of assets, but Fei Protocol has not received any response from the attackers.
