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Gemini Uses MakerDAO to Boost Adoption of Its GUSD Stablecoin

                                                            Am 29. September veröffentlichte Gemini-Mitbegründer Tyler Winklevoss einen vorgeschlagenen „Marketing-Anreiz“ im MakerDAO-Forum, um die Einführung seiner Stablecoin GUSD durch einen dreimonatigen Strategieplan voranzutreiben.

According to Tyler Winklevoss SuggestionPays Gemini monthly fixed annual interest of 1.25% on all GUSD stored in MakerDAO PSM vaults as long as the average monthly balance through month-end is at least GUSD 100 million.

“Since we want GUSD usage to increase on-chain, we propose that this marketing incentive be credited only if the average monthly balance of GUSD in the PSM is greater than or equal to $100 million for the month.”

This would be the US-based exchange’s latest effort to grow in the middle of the crypto winter. It had to be recently laid off over 10% of its workforce to reduce costs and maintain a sustainable business model. The move to promote its native stablecoin comes after Binance and Circle announced various business moves to promote their own tokens.

Binance and WazirX recently delisted USDC, Paxos and TrueUSD. The exchange later converted its users’ funds to BUSD. On the other side Circle announced the expansion USDC into five new blockchains to counteract the impact of Binance’s influence.

Gemini is trying to incentivize GUSD adoption

Currently, MarkerDAO stores approximately GUSD 24 million in the MakerDAO PSM (Peg Stability Module) vault, which is responsible for ensuring users DAI mint by exchanging any type of collateral that MakerDAO accepts. Therefore, the Winklevoss proposal seeks to encourage GUSD adoption by increasing GUSD deposits Mint DAI.

MakerDAO needs to create a new KYC compliant account in Gemini for GUSD to be credited.

GUSDs minted on MakerDAO vaults are not held by Gemini to maintain the DAO– management not to disturb; However, they should not be moved out of the MakerDAO PSM vaults.

“We recognize the importance of the PSM in securing DAI redemptions and believe keeping it on-chain is the best way to accomplish this task.”

Winklevoss ended the statement by noting that if all goes well, after reviewing the proposal in late December, it is possible to renew it for a new year, demonstrating Gemini’s commitment to increased adoption of its stablecoin.

The MakerDAO community has responded positively to the proposal

The Winklevoss proposal is so well received on the MakerDAO forums that user ADCV, a member of MakerDAO’s Strategic Finance Core Unit, Posted a chart illustrating why Gemini “provides a very compelling incentive to hold as much PSM in GUSD as possible.”
Gemini Uses MakerDAO to Boost Adoption of Its GUSD Stablecoin, Crypto Trading News MarkerDAO Forum
Similarly, TrueMaker, a recognized protocol delegate, said that this is a great proposal and that going forward, all PSM pairs should be approached the same way, since PSM, as MakerDAO’s decentralized exchange, helps ensure DAI’s 1:1 parity with the US dollar.

According to MakerDAO, DAI is always over-collateralised, and “Maker Vaults always have more USD in collateral than all DAI in circulation.” Gemini’s proposal could help the protocol capitalize on one of its key features that has so far kept it from depegging from the US dollar.

2️⃣ Dai is always overcollateralised.

Overcollateralization is a trait of the health of the entire Maker log system and the stability of Dai.

Maker Vaults always have more USD in collateral than all the Dai in circulation.

— Maker (@MakerDAO) March 31, 2022

If approved, the proposal could lay the groundwork for other stablecoin issuers to propose stimulus that would benefit both the launch of their currencies and the stability and improvement of the protocol.

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Source: Crypto News Deutsch

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