A lot of things are happening in the cryptocurrency and blockchain space. MakerDAO is now making use USDC as a new collateral asset.
Most people know MakerDAO as a way to convert Ethereum holdings into DAI.
USDC is Live on MakerDAO
That DAI stablecoin can then be used in various DeFi applications on Ethereum.
In a surprising turn of events, the MakerDAO team decided to introduce another collateral asset.
USDC Is now part of the Maker Protocol as the third collateral type.
Similar to Ethereum and BAT, USDC can be used to generate Dai as well.
That marks an interesting milestone, as using one stablecoin to generate a different one is remarkable.
Similar to the other assets, there is a collateralization limit in place, as well as a debt ceiling and liquidation penalty.
However, during the initial stage, there is no liquidation for USDC, albeit that will change in the future.
What all of this means for the DeFi industry, remains to be determined.
It seems to be a beneficial change, although some users may be dismayed due to this decision.
At its core, the Maker Protocol is designed to be extremely flexible.
Particularly in terms of collateral assets, there are still many different options waiting to be explored.