The MakerDAO community has voted to enact an emergency governance proposal aimed at reinforcing DAI’s peg to the U.S. dollar. 

A new set of parameter changes will be imposed on the Maker Protocol at 12:14 pm ET on March 13. The proposal was set in motion by Maker’s Risk Core Unit two days prior, with the aim of limiting the protocol’s exposure to “potentially impaired stablecoins.”

The changes that will be incorporated include reducing the debt ceiling of liquidity providers to 0 DAI, bringing down daily minting limits from 950 million DAI to 250 million DAI on USDC on the PSM and increasing fee from 0% to 1%  to discourage swapping of USDC for DAI.

The protocol also plans to reduce GUSD daily minting to 10 million DAI and eliminate all exposure to DeFi protocols Aave and Compound.  

Maker’s sense of urgency in deploying this proposal stems from the chaos that surrounded USDC following Circle disclosing it held $3.3 billion worth of its reserves with Silicon Valley Bank (SVB). USDC accounts for $4.12 billion worth of Maker’s Peg Stability Module (PSM) reserve assets.

When USDC briefly lost its peg to the U.S. dollar over the weekend, DAI soon followed suit. As blockchain researcher Eric Wall explained, this was a situation that was bound to happen because USDC is hardcoded as $1 on Maker.

According to data from, at the time of writing, Maker’s PSM reserve assets stood at $4.4 billion, backing DAI at a 100% collateralization rate. However, CryptoQuant’s data shows that DAI’s supply increased by 1.4 billion in the last two days, and now sits at more than 6.35 billion.