![MakerDAO [MKR] reacts to Stablecoin contagion with this proposal](https://i.headtopics.com/images/2023/3/12/cryptoamb/makerdao-mkr-reacts-to-stablecoin-contagion-with-t-makerdao-mkr-reacts-to-stablecoin-contagion-with-t-1634819765326807040.webp)
MakerDAO reveals an emergency proposal to reinforce its platform against stablecoin risks. USDC de-pegging inadvertently triggers demand for MKR. MakerDAO is making moves aimed at protecting against exposure to risk associated with stablecoins. This is in response to USDC’s recent de-pegging which reignited concerns about stablecoins under unfavorable market conditions. Is your portfolio green? Check […]
The rationale for higher swap fees is that it will discourage USDC-DAI swaps while offering an incentive for alternative ways of offloading USDC. Failure to execute such moves may lead to more exposure to liquidity risks associated with stablecoin runs.
Some of the incentives in the proposal include a higher debt ceiling of 1 billion DAI. The DeFi platform also aims to reduce the USDP to DAI swap fee to 0%.fell off a bearish cliff last week, resulting in a 37% pullback from its previous high. A strong selloff saw it push as low as $597.12, followed by a 20% recovery to its $728 press time price. The recovery on Saturday makes it one of the few top tokens that have achieved a sizable bounceback.MKR traders should note that the token held on well to its relative strength despite the bearish outcome so far in March.But why the sharp bounce back? It turns out that MKR was among the most purchased tokens by whales.
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