The DeFi ecosystem is widely considered to be the technology capable of taking Ethereum mainstream. So far, the rest of the world isn’t too convinced, especially with the ETH price taking a massive beating.
When the value of Ethereum drops, all projects built on top of it come under massive pressure.
MakerDAO in the hot Seat
Especially the DeFi industry is now a primary point of focus.
While this system has proven to be very interesting, some users may struggle to get their collateral back depending on how they used the generated DAI or SAI, for example.
MakerDAO, the project responsible for creating DAI, has been battling the tide for a while now.
Last night, it appeared as if the project would be shut down temporarily.
That could have been catastrophic, as roughly 2.4 million ETH would find its way to the open market.
Thankfully, it seems things did not end in a drama.
Issues like these go to show how feeble the DeFi ecosystem is right now.
Lower prices for Ethereum will make more people aware of DeFi, but not necessarily in a positive manner.
With the current market volatility, all eyes will be on MakerDAO and other DeFi solutions.
There is a lot of money locked up, but it can easily flood markets if left unchecked.
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