Pasox Proposes a Plan to Leading DeFi Protocol MakerDAO to Boost its USDP

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Pax­os, the com­pa­ny that issues Sta­ble­coins, has come for­ward with a new pro­pos­al in which it sug­gests the pay­out of month­ly mar­ket­ing fees to Mak­er­DAO, the top decen­tral­ized finance (DeFi) pro­to­col, to boost the use of its Pax dol­lar (USDP) inside the Mak­er ecos­phere and raise the USDP ceil­ing to 1.5 bil­lion USDP.

Pax­os want­ed the USDP Peg Sta­bil­i­ty Mod­ule (PSM) on Mak­er­Dao to be increased from its present val­ue of $450 mil­lion to $1.5 bil­lion, as stat­ed in the pro­pos­al. The PSM is an ele­ment of the Mak­er­DAO sys­tem that assists in keep­ing the price of the DAI sta­ble­coin, which is tied to the val­ue of the U.S. dollar.

The pro­pos­al (1) said that if this debt cap was raised, 

“the com­plete USDP PSM will be able to pro­duce up to $29M in year­ly income for MakerDAO.”

Boost­ing the debt cap for DAI’s USDP would assist in low­er­ing the com­pa­ny’s expo­sure to USDC and increas­ing the amount of income that may be gen­er­at­ed. At the time, USDC pro­duced around 40% of new DAI and col­lat­er­al­ized approx­i­mate­ly 30% of exist­ing DAI. As a result, the plan char­ac­ter­ized this step as an effi­cient and risk-free strat­e­gy to lessen DAI’s reliance on USDC.

MKR Token Sees a Steady Rise

As of the time of writ­ing, the Mak­er­DAO native token MKR has a mar­ket val­ue of $709.90. Accord­ing to sta­tis­tics pro­vid­ed by Coin­Mar­ket­Cap (2), the val­ue of the alter­na­tive cur­ren­cy has increased by 41% since the begin­ning of the year.

Source: Coin­Mar­ket­Cap (1.1)

The mar­ket cap­i­tal­iza­tion has been on a steady increase as well. It was $ 694 Mil­lion when we saw the data at Coin­Mar­ket­Cap. (2)

Chart Source: Coin­Mar­ket­Cap (2.1)

Since the begin­ning of the year, MKR has observed an increase in the accu­mu­la­tion. When the per­for­mance of the alt was ana­lyzed using a dai­ly chart, it was shown that buy­ers had been in con­trol of the mar­ket since the 7th of January.

After tak­ing a look at the Direc­tion­al Move­ment Index (DMI), it was estab­lished that this was the point in time when the Pos­i­tive Direc­tion­al Indi­ca­tor and the Neg­a­tive Direc­tion­al Indi­ca­tor inter­sect­ed in an uptrend.

MKR Chart Source: tradingview.com (3.1)

A price increase is shown when an asset’s pos­i­tive DMI (indi­cat­ed in green) climbs high­er than the neg­a­tive DMI (marked in red). This sug­gests that the cryp­to asset’s val­ue is trend­ing upward and that there has been more move­ment in the pos­i­tive direc­tion than in the neg­a­tive one.

A check at the Aver­age Direc­tion­al Index (ADX) showed that the strength of the buy­ers was one that MKR sell­ers would find dif­fi­cult to reverse in the short run. This is espe­cial­ly true giv­en the cur­rent mar­ket envi­ron­ment. This (yel­low) was sit­ting at 50 at the time of the press.

Last­ly, impor­tant indi­ca­tors like the Rel­a­tive Strength Index (RSI) and Mon­ey Flow Index (MFI) were placed above their neu­tral zones, with respec­tive val­ues of 68.51 and 77.39. At the time of pub­li­ca­tion, this indi­cat­ed that the pur­chas­ing momen­tum was pick­ing up, and MKR was get­ting dan­ger­ous­ly close to being overvalued.

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