AAVE to ‘freeze’ and replace BUSD? New proposal suggests…

AAVE to 'freeze' and replace BUSD? New proposal suggests...

Pointing out Paxos’ inability to mint BUSD anymore, Zeller mentioned that sticking to BUSD could hurt the project’s arbitrage opportunity. Apart from that, the proposal mentioned the stablecoin’s potential to edge towards zero with no growth prospect. Zeller wrote,

“As there’s no real prospect of growth and the inability to mint new BUSD might hurt peg arbitrage opportunity and asset peg. It seems that the most reasonable path for Aave is to freeze this reserve and invite users to switch to another stablecoin among the diversity present in Aave.” Comments from the Aave DAO mostly appreciated the proposer. Also, many were in tune with the option. However, it was not yet clear which stablecoin the Aave community intends to switch to, despite having its ownFurther, Zeller suggested that the community could agree on the execution date for 26 February after the governance votes on it. He also added that the community could take the option of 19 February, which was two days before BUSD’s final minting.after Paxos’ confirmation.

At the time of writing, the 20 EMA positioned over the 50 EMA . This instance displayed how buyers were in control of the market at press time, and AAVE could hold on to the uptick in the short term.Subscribe to get it daily in your inbox.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CryptoAmb /  🏆 22. in CA

Philippines Latest News, Philippines Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Paxos will stop issuing Binance's BUSD stablecoin following SEC, New York intervention(Kitco News) - In the latest salvo from U.S. regulators against crypto firms, stablecoin issuer Paxos Trust will stop issuing the Binance USD coin (BUSD), the third largest stablecoin by market cap, following an order from the New York Department of Financial Services (NYDFS).
Read more »

Could Binance USD [BUSD] be the next SEC casualty as regulator digs deep into…Paxos, the BUSD issuer, received a letter from the SEC on allegations of being unregistered security. The investigation could be a detriment on Binance’s part as NYDFS orders a stop to BUSD minting. Binance USD [BUSD] holders might be faced with a heavy cross to bear after the U.S. SEC notified its issuer of a […]
Read more »

Binance's forced USDC conversion, insufficient reserves killed BUSD(Kitco News) - When Paxos Trust revealed they were ordered to stop minting the BUSD token, Binance founder Changpeng Zhao responded by saying BUSD was a Paxos product and the regulator’s actions had nothing to do with them. But according to a new report published today, Binance may have been the problem with BUSD all along.
Read more »

SEC’s new proposal affects crypto firms and hedge funds: Here’s whyThe SEC is reportedly planning to propose a rule change for crypto firms on 15 February. The proposal would make it harder for crypto firms to become qualified custodians for hedge funds, pension funds, and more. The U.S. Securities and Exchange Commission (SEC) reportedly has a proposal in the pipeline that may affect the way […]
Read more »

What BUSD’s fallout means for Binance Coin’s [BNB] futureBNB price fell, its trading volume hit monthly high, whales dumped BUSD after regulator’s 13 February decision. Traders short BNB as NFDFS shared reason for earlier resolution. Binance Coin [BNB], the exchange coin of the world’s largest cryptocurrency exchange, felt the repercussions of the NYDFS’ decision to halt further minting of Binance USD [BUSD]. According […]
Read more »

Uniswap [UNI] caught in firing line as BUSD FUD threatens to reverse gainsTransaction fees on Uniswap nosedived as users stayed away. Whales stayed faithful to UNI as it was one of the most purchased tokens. Uniswap[UNI] saw its Binance USD [BUSD] holdings deplete sharply as traders holding the dollar-pegged stablecoin looked for the quickest ways to exit the market. Realistic or not, here’s UNI’s market cap in BTC’s […]
Read more »