With Digital Currency Group's Genesis crypto lending unit said to be on the brink of a bankruptcy filing, a group of folks reassessed the risk associated with one stablecoin in the mix: the U.S. dollar-pegged Gemini Dollar.
Yes, but:
It's a big "IF" whether a GUSD holder might qualify for pass-through insurance, according to Steven Kelly, senior research associate at the Yale Program on Financial Stability. It would be at the discretion of the FDIC to apply "pass-through," and so far they haven't been keen, in part due to the rash of crypto firms'GUSD isn't used very much besides on the Gemini platform and MakerDAO, which makes it highly illiquid relative to other dollar-pegged stablecoins.
"The worst case scenario would involve troubles at Gemini that cause a delay in redemptions," according to Kaiko Research's Riyad Carey.In the event that illiquidity prompts fear, GUSD could temporarily deviate from its peg. MakerDAO appears to be taking that risk for the 1.25% yield.
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.
MakerDAO Votes to Keep Gemini USD in DAI Stablecoin’s ReservesIn a tight vote that flipped at the last minute, MakerDAO opted to keep Gemini USD as collateral for its DAI stablecoin. sndr_krisztian reports
Read more »
MakerDAO voting to limit DAI exposure to Gemini amid insolvency fearsMakerDAO has begun the process that could see the protocol limit the DAI’s exposure to Gemini’s stablecoin.
Read more »
MakerDAO Favors Holding GUSD Stablecoin as Part of Reserve in Early VotingDespite looming troubles around the Winklevoss twins' crypto firm, the overwhelming majority of MakerDAO voters favor keeping the $500 million Gemini USD stablecoin ceiling in Maker’s PSM reserve. sndr_krisztian reports
Read more »
Gemini’s Bitcoin Inflows From Other Exchanges Dropped to Roughly Six-Year Low, CryptoQuant Data ShowsOn-chain data sourced from CryptoQuant shows Gemini’s 30-day simple moving average of $BTC inflows from accounts at other exchanges has dropped to a six-year low, reports.
Read more »
Algorand (ALGO) Records 15% Growth Following Major DeFi MilestoneAlgorand price is up by 15 WTD following this impressive DeFi record
Read more »
DeFi Protocol Thena Sees Total Value Surge to $90M in a WeekDeFi protocol ThenaFi_ has experience an uptick in TVL from $5 million to $90 million in one week as the DeFi market continues its recovery. Reporting by OKnightCrypto.
Read more »