Since the current backing of CUSD and other native zeal stablecoins is backed by DAI.
Wouldn’t it be more feasible for the ecosystem in general for CELO as a native token to be a collateral in MakerDAO?
Making an allizanda with the centrar unit in charge of this.
Already GNOSIS Chain (Formerly xDAI Chain) is in costruction of a juicy deal to be accepted as collateral currency, as well as already previously Matic from Polygon Network.
It would be a very important step for the development and decentralization of cUSD and other stablecoins, as we would not depend on centelized services such as coinbase or binance to obtain DAI.
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This is a great line of thinking that should be explored further with bridge security in mind (choice of bridge matters heavily in cross-chain collaterals).
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After rolling this round my head overnight I think I see a few problems.
I think this falls in the category of ‘sounds fun but isn’t productive’.
It not free, the stability fee takes a few % for the ‘privilege’ of borrowing the Dai.
It creates the risk of making losses permanent, rather than transitory, in a down market.
It is an inefficient use of ‘money’ because you have to put up more Celo than you get back as Dai.
It seems to me the only real winner in that transaction would be Maker.
If Celo wants to be a banker to the world, Celo needs to be on the other side of this type of transaction.
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