March 2, 2021

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Lighting News | Cardano, MakerDao

2 min read
Lighting News | Cardano, MakerDao

 

Former partner sues Cardano foundation

 

Cardano Foundation made an announcement on its website disclosing that Z/Yen Group Limited (UK) has initiated legal proceedings against it. Z/Yen Group Limited is a fintech think tank and a former research partner of the Foundation. Back in 2018, the two co-authored a report entitled “The Quantum Countdown: Quantum Computing and the Future of Distributed Ledger Encryption.” 

 

The information released by the Cardano Information on the nature of these “legal proceedings” is scant:

“The proceedings relate to an alleged agreement between the Z/Yen Group Limited and the Cardano Foundation dated July 2017. The Cardano Foundation voided/terminated the agreement for various reasons. The Cardano Foundation fully rejects the claims raised by the Z/Yen Group Limited. Due to the ongoing nature of this judiciary process, no further information will be given while proceedings are in progress.” More details.

 

MakerDAO is considering the use of alternative support by stalbecoin USDC

 

MakerDAO, leading player in the decentralized finance sector, is facing liquidity risk in an uncertain market. The MakerDAO community is considering adding support for USDC, the cryptocurrency associated with Circle, as an alternative collateral to help bear this risk. According to the post describing potential USDC collateral support, the move would allow for locking up USDC, minting DAI and selling the DAI for USDC to restore DAI’s liquidity and push its peg back toward $1 USD. It would also let vault holders close their Vaults without eating the loss on the DAI peg being high against USD. 

 

A MakerDAO representative offered a counterpoint on USDC support diluting the company’s decentralization:

DAI is decentralized because there is no central authority that mints or custodies or approves people’s access to it. The individual does all of it for themselves, that’s why the community is driving the parameters of the systems (per the discussions in forum).


The community has been discussing the potential for all kinds of assets as acceptable collateral in the system for ages. Many of those assets are not decentralized, like tokenized securities, should they ever be accepted by MKR holders.

To say that DAI is not decentralized because of some of the assets that might back it would be erroneous. More details.

 

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