One of the largest decentralized applications (dapps) on the Ethereum blockchain, Maker protocol plans to include CRO as a collateral asset. If this happens, CRO’s utility will extend and the token can be used to create Dai. According to the reports, Crypto.com had proposed CRO collateral onboarding to MakerDAO community on 29 September. Following this, the governance facilitators placed a governance poll into the MakerDAO voting system in October. The poll results came out yesterday. Impressively 87.86% of the MKR voters are in favor of adding CRO as a collateral asset.
MakerDAO launched with only Ethereum as a collateral asset. It transitioned from a single-collateral Dai to multi-collateral Dai earlier this year. For any new token addition to the protocol, the decentralized governance body of MakerDAO conducts voting. The previous polls clearly suggest that MakerDAO is very picky and it doesn’t include any unstable asset to its protocol to create Dai. Will Crypto.com make it?
Thanks to everyone who voted in favor of our proposal!https://t.co/hk4h0PQ4hH pic.twitter.com/hiSXSeCv9q
— Crypto.com (@cryptocom) November 4, 2020
Since March 2020, MakerDAO added 10 assets to its protocol as collateral assets. Prior to that only ETH and BAT could be used to mint Dai. For the rest of the assets, the stability fee ranges between 2-12%, and the minimum collateral ratio ranges between 101%-175%.
These details about CRO inclusion are yet to unfold. This is because every asset that passes a greenlight does not ensure that it will become collateral asset. According to Nik Kunkel, MakerDAO Head of Backend Services, the domain teams will first conduct a deeper review of CRO. The areas like risk, oracles, and smart contracts will be reviewed to ensure the secure handling of Dai.
Will this save CRO?
Over the last 30 days, the CRO price has dropped by almost 47%. The unannounced maintenance and sudden revision of staking rates led to this sudden drop. However, we strongly believe if CRO makes it to the Maker protocol collateral asset list, it might trigger a positive CRO price action.
At the time of press, CRO is trading close to $0.078 and is up by 2.1% in the last 24 hours.
For more crypto-related updates do check out our Altcoin Buzz YouTube channel.