[Signal Request] Should we delay the governance poll related to adding PAX-GUSD-BUSD to PSM?

The PSM has given USDC increased exposure in defi by being able to mint Dai 1:1.
It’s not surprising that other stablecoins like Pax, BUSD and GUSD want this same exposure and would benefit from being added to the PSM. Stablecoins that are on-boarded get an incredible benefit of being direct minters of Dai. For this service, we should consider all the potential benefits the Maker protocol can receive in exchange for adding new stablecoin support, in addition to maintaining the peg.

For example, it’s critically important to consider what they add to the total distribution and usability of Dai. In the case of Paxos, the issuer of Pax, being able to have Dai enabled on their platforms api’s and infrastructure, which serves fintechs like Paypal and Revolut, it is clear that they can bring value to Dai by supporting it on their products which ultimately creates more demand for Dai and then more Pax minting of Dai. Looking at the full scope of benefits a stablecoin like Pax can bring, also offsets its current somewhat limited circulating supply.

For MakerDAO, including Dai in the Paxos API and infrastructure means directly on-off ramps from USD to DAI (through PAX) and a regulated channel for Dai minting. The difference between USDC and PAX as collateral in the PSM is that Paxos could offer this service for Dai if we can get an agreement with them. Binance and Gemini are similar, and we are in conversations with those teams to find out what they can offer to MakerDAO.

Further, there has been active discussions in the community about what collaterals are the most productive and which are costing more by maintaining oracles, performing risk assessments and other operational overhead. We should evaluate stablecoins that are considered for the PSM in the same way, with an emphasis on how they increase the demand for Dai generation and usability. The Growth team is actively discussing how some of the pending stablecoins can bring utility to Dai users by opening up new distribution channels and we’d like to have a few weeks to conclude these discussions before adding these stablecoins to the next on chain vote.

  • Yes
  • No
  • Abstain

0 voters

If yes wins, we will delay this poll until having a clear understanding of what Paxos (or the others) can offer to MakerDAO to add PAX(or other stablecoin) to the PSM.
If no wins, the normal cycle of the poll will continue.

We will keep everyone updated with any relevant information we get from Paxos, Binance, or Gemini.

Poll ends on Thursday, 1st of July.

7 Likes

I voted yes in order to give Growth a chance to negotiate (if I am understanding the total situation correctly). There’s not much to lose by a short delay to ensure we proceed with prudence, caution, and actively pursue the best deal (or no deal) for Maker.

For the record, I would also like to see a technical solution to @cmooney’s “vampire attack” hypothetical with multiple unfettered PSMs. I feel like that’s not a huge hurdle and can also be overcome before implementing multiple PSMs.

5 Likes

Excellent I think it is the most prudent thing to do so far, we must be very clear about the benefits for Maker, I certainly agree.

1 Like

For BUSD, they been waiting as BUSD got greenlit for collateral a long time ago and is still not used as collateral. They also promoted Dai before as they committed. I shared about PSM with them and they said they are open for joint PR and marketing.

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Going to have more talk over weekdays. I have a bad habit of forgetting it’s weekends.

Edit: Meeting will be tomorrow

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Some time ago I spoke with friends of mine from Binance (in fact the Marketing Manager is a close friend of mine), they told me that BUSD is a product of Paxos Standar only that uses the name PAX, therefore those relations and bells would be with Binance or with PAX?

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BUSD team still comes from Binance team. So are their emails and marketing and etc

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I invited her to add comments last time and we are discussing about psm this time

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UPDATE PAXOS
The Paxos team told us that they are very interested to be part of the maker Ecosystem and they will be posting in two weeks a draft regarding the following.

  • Total capital commitment to put in the PSM.
  • Tranches and conditions to form the total capital.
  • How Dai is going to be implemented in their systems and products.
  • Overall agreement

The most important thing for us is that they build a process inside their systems for their clients to mint Dai. This process must involve the use of their APIs, so any institution can send a USD wire transfer to PAXOS and choose to mint Dai. This will be a transparent and simpler process for their clients to access Dai, where PAX is sent to the PSM and in turn, sends DAI to the client´s wallet

15 Likes

What tremendous news mariano!!! I am pleased with this and hope it turns out for the best in the name of blockchain :rofl: that it all works out wonderfully. :sunglasses: :partying_face:

1 Like

I nominate this for under appreciated sentence of the day. Growth CU is getting to be like Santa Claus with all the gifts it’s bringing us the last few months.

7 Likes

Agree with @Saludiego_201 this are great news for Maker. :partying_face:

1 Like

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