Investing.com — Exponential has downgraded the Maker DAI pool rating from Low risk to Average risk, reflecting a reassessment of the risks associated with Maker’s collateralization strategy for DAI.
MakerDAO is a lending platform that supports a decentralized stablecoin called DAI. The latter is pegged to the U.S. dollar, providing a stable value when users exchange more volatile cryptocurrencies.
The protocol allows anyone to take out loans in DAI by using other cryptocurrencies as collateral. These loans are overcollateralized, meaning you need to deposit more assets than you borrow.
The lender-borrower structure seems to be great for MakerDAO, but Exponential analysts say a thorough review of its evolving collateral strategy justifies the downgrade to an Average risk rating.
Initially, DAI was backed entirely by on-chain assets like ETH, , and a few centralized stablecoins, providing DAI holders…
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