MakerDAO Adds Chainlink, Compound, Loopring as Collateral Options

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30 September 2020

The MakerDAO community has voted to add support for a trio of new tokens for the decentralized finance (DeFi) loans that generate DAI stablecoins.

Vaults are now open for deposits of Chainlink’s LINK, Loopring’s LRC and Compound’s COMP. Community members pitched proposals to add the tokens this summer and voted for their integration via Maker’s on-chain governance platform this week.

Counting this new crop of collateral options, MakerDAO has added 11 new DAI vault pairs this year. The other tokens, MANA, WBTC, ZRX, KNC, TUSD, PAX, USDC and USDT, were added partly in response to DAI losing its $1 peg, as the extra collateral was meant incentivize collateralizing more DAI to drive its price down.

In a recent bid to rectify DAI’s peg instability during DeFi’s yield farming craze, the Maker community voted in a proposal to lower the collateralization requirements for DAI’s primary USDC vault to pump more DAI into the market. Since the proposal’s implementation, DAI’s price has dropped to $1.01.

Read more: ‘No Other Option but More Collateral’: The Short- (and Long-) Term Fixes for Dai’s Broken Peg

Speaking to CoinDesk about proposals to keep DAI’s peg steady, MakerDAO founder Rune Christensen said there is “no other option but to onboard more collateral.”

Currently, USDC is the most popular collateralization option for DAI with 372 million USDC locked. 

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