The amount of USDC used as backing in MakerDAO’s Pegged Stability Module (PSM) has dropped significantly since the beginning of the year. According to data from DeFiLlama, in January 2023, about $2.4 billion USDC was locked in PSM. That figure has now shrunk to around $520 million, representing a 78% drop in the amount of USDC used directly to back DAI in its own contracts. Notably, USDC’s overall share of DAI’s collateral reserves has dropped from around 50% to just 8%. The current supply of DAI is 4.7 billion.
Coin World Note: PSM allows users to deposit USDC and mint DAI at a ratio of 1:1, which helps keep stablecoins pegged to the US dollar
Coin World Note: PSM allows users to deposit USDC and mint DAI at a ratio of 1:1, which helps keep stablecoins pegged to the US dollar