MakerDAO Looks To Add Binance USD And Gemini As Collateral

MakerDAO looks to add Binance USD and Gemini as collateral as the community voted to prioritize GUSD, BUSD, and 8 more tokens for inclusion as collateral. This way, they will be allowed to create DAI as we read further in our MakerDAO news today.

Binance USD and Gemini received green lights from the MakerDAO community as potential collateral Assets for DAI and if the assets are approved, the users can put them on the Maker platform and generate  DAI. The platform continues adding collateral assets as it moves away from allowing only Ether.

Some good #DeFi news. The MIP6 proposal to add GUSD (Gemini USD) as a collateral asset to the Maker Protocol passed unanimously. Thank u to all who voted & showed support. I and the @Gemini team look forward to discussing GUSD on the next available @MakerDAO collateral call. 👍🚀

— Tyler Winklevoss (@tylerwinklevoss) August 31, 2020

Maker holders voted to prioritize adding Gemini USD, Binance USD, and a few other tokens as collateral assets to the Maker DAO protocols so these tokens can be used to generate DAI stablecoins. Maker Domain Teams which are elected community members will analyze these tokens and will determine whether these protocols can handle them before the community takes a final vote to reject or to accept a collateral asset.

According to the Maker whitepaper, the users can put up Ethereum-based digital assets as collateral in order to generate DAI so the users can then use the stablecoin like any other cryptocurrency or lock it into a smart contract. Maker governance is intricate but two weeks ago, the Governance facilitators polled users about 11 tokens that will be added to the protocol including Gemini USD and binance USD as MakerDAO looks to add them.

According to Maker’s blog, the yes vote will be taken as a signal to domain teams that MKR token holders approved further domain work with the goal of adding GUSD and BUSD to the protocol. By the time the voting ended, 11 voters put up 20,207.58 MKR to vote yes for Gemini. There were no zero votes which means the project has the initial green light from the community. Binance USD also got the green light with nine voters expressing the approval for 30,000 MKR.

GUSD and BUSD were two of the tokens that the voters approved to move forward as the members of the community also gave thumbs up for TrueAUD, TrueCAD, Ren, New Silver DROP, and more. But it is not certain that Gemini or these other coins will get added soon enough as the head of Backend Services Nik Kunkel said:

“Just because an asset has passed a green light does not necessarily indicate it will become a collateral type in the Maker Protocol. A thorough review by the [elected] Domain Teams in areas such as risk, oracles, and smart contracts to ensure the protocol can handle them in a secure manner.”