MakerDAO’s Total Collateralization Stands at 15.4%; Report Says

MakerDAO, the open-source global financial system, updated its official Twitter account with the up-to-date details of the system claiming that its total collateralization is at 15.4% with $8.6 billion worth of the collateral backing $5.38 billion $DAI.

Notably, on March 11, Maker DAO tweeted sharing the system’s collateralization, affirming that system has been working always as expected:

In addition, the platform highlighted that “no liquidations have been triggered during the last week”. MakerDAO also pointed out that the protocol of MakerDAO concentrates on the stability of $DAI.

Prior to the former tweet, MakerDAO posted another message regarding the Peg Stability Module (PSM), the decentralized exchange allowing users to swap US-pegged stablecoins for $DAI at a rate of 1:1:

Significantly, MakerDAO announced the smooth functioning of the exchange, claiming:

PSM working smoothly as expected with reserves standing at $3.15 billion backing 3.15 billion $DAI at 100% collateralization.

Interestingly, the platform tweeted that the PSM’s basic agenda is to provide stability to $DAI quoting “PSM’s code is the law for $DAI stability”.

Additionally, the tweet included a screenshot of the list of the system’s collaterals and provided a link to the makerburn’s collateral list.

MakerDAO’s Collateral List

Responding to both tweets, the crypto community began clarifying their doubts, basically regarding $DAI pegged to an “unstable coin”. There were some tweeters who commented that “$0.89 is an unacceptable range”.

Comparatively, MakerDAO’s revelations presumably received challenges and suspicions rather than passive acceptance. The crypto aspirants refuted that the stablecoins are already down by 5%, and thus the claim put forward by the platform that the system is working smoothly is fallacious.