{"id":21351,"date":"2023-06-02T02:05:16","date_gmt":"2023-06-02T02:05:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/makerdao-votes-to-drop-pax-dollar-usdp-stablecoin-from-its-reserves\/"},"modified":"2023-06-02T02:05:16","modified_gmt":"2023-06-02T02:05:16","slug":"makerdao-votes-to-drop-pax-dollar-usdp-stablecoin-from-its-reserves","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/makerdao-votes-to-drop-pax-dollar-usdp-stablecoin-from-its-reserves\/","title":{"rendered":"MakerDAO votes to drop Pax Dollar (USDP) stablecoin from its reserves"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1685638255985-5d813da9-44e6-4c8d-a74d-31f12275581d-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1685638255985-5d813da9-44e6-4c8d-a74d-31f12275581d-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1685638255985-5d813da9-44e6-4c8d-a74d-31f12275581d-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/06\/1685638255985-5d813da9-44e6-4c8d-a74d-31f12275581d-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>The MakerDAO community has voted to ditch Pax Dollar (USDP) stablecoin worth $500 million from its reserves.<\/li>\n<li>Maker\u2019s treasury holds roughly half of the USDP\u2019s $1 billion supply.<\/li>\n<li>New York state regulators in February forced Paxos to halt minting Binance USD (BUSD) stablecoin.<\/li>\n<\/ul>\n<p>The decentralized finance (DeFi) lending protocol MakerDAO\u2019s community has <a href=\"https:\/\/vote.makerdao.com\/polling\/QmQYSLHH#vote-breakdown\">voted<\/a> to drop the $500 million worth of USDP stablecoin from its reserves. This is a major blow to the <a href=\"https:\/\/coinjournal.net\/search\/Pax+dollar\">Pax Dollar (USDP)<\/a> stablecoin since the lending protocol held half of the USDP token supply.<\/p>\n<p>In total, there is a $1 billion USDP token supply and after the vote, Maker will remove all the 500 USDP tokens from its reserves.<\/p>\n<p>After dropping the USDP, MakerDAO, which is the issuer of the $5 billion DAI stablecoin and the governing body of Maker, which is one of the largest lending protocols in <a href=\"https:\/\/coinjournal.net\/news\/tag\/defi\/\">DeFi<\/a>, will boost its revenues by investing its vast reserves in yield-generating strategies.<\/p>\n<p>Examples of the yield-generating strategies that MakerDAO will invest in include <a href=\"https:\/\/coinjournal.net\/exchanges\/gemini\/\">Gemini<\/a>, which pays an incentive to MakerDAO for holding its stablecoin, the GUSD. MakerDAO is also primed to earn a 2.6% yield on the $500 million of USDC it holds from Coinbase Prime.<\/p>\n<h2>Impact on the embattled Paxos<\/h2>\n<p>Paxos was in February forced by New York state regulators to halt minting Binance USD (BUSD) stablecoin. Since then, the market cap of the BUSD stablecoin has drastically declined from $16 billion to $5 billion according to data from Coingecko.<\/p>\n<p>Although the <a href=\"https:\/\/www.coinlore.com\/coin\/pax-dollar\">Pax dollar metrics<\/a> remained largely unaffected, the MakerDAO move has a significant impact on Paxos as a company.<\/p>\n<p>The MakerDAO community argued that the USDP did not accrue any revenue for MakerDAO, something that hurt its capital efficiency as it plans to <a href=\"https:\/\/coinjournal.net\/news\/makerdao-proposal-eyes-dai-savings-rate-increase-to-3-33\/\">increase the rewards rate for DAI savings<\/a>.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/makerdao-votes-to-drop-pax-dollar-usdp-stablecoin-from-its-reserves\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) The MakerDAO community has voted to ditch Pax Dollar (USDP) stablecoin worth $500 million from its reserves. Maker\u2019s treasury holds roughly half of the USDP\u2019s $1 billion supply. New York state regulators in February forced Paxos to halt minting Binance USD (BUSD) stablecoin. [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":21352,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21351"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=21351"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/21351\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/21352"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=21351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=21351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=21351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}