Crypto exchange Coinbase has announced the addition of MakerDAO’s DAI stablecoin to its listings.
The listing didn’t go as smoothly as hoped, however. The exchange clarified shortly on Twitter that the ETH-DAI book has been moved to cancel-only mode after it failed to meet the metrics required to proceed to trading.
Once everything about the listing is cleared up, Coinbase users will be able to buy, sell, convert, and trade the stablecoin on the exchange’s website and mobile apps—as long as they’re not New York residents, that is.
The crypto exchange has suggested that users in New York may eventually be able to buy and trade DAI. Coinbase may still be waiting for the New York Department of Financial Services to approve the stablecoin’s listing.
Sticking to the dollar peg
The DAI stablecoin is backed by collateral on MakerDAO’s platform, but it still aims to become pegged to the U.S. dollar. MakerDAO’s systems place DAI as a decentralized, collateral-backed stablecoin while the company’s MKR token provides governance by giving token holders voting rights on DAI’s stability fees.
The stability fee works as a kind of interest rate governing the issuance of new DAI. DAI borrowers use ether as collateral, and when they want to reclaim their ether, they have to return both the DAI they borrower plus the stability fee.
As MakerDAO explains, increasing the stability fee incentivizes DAI borrowers to return their DAI and reduce the stablecoins market supply. This is done in an effort to make sure that DAI’s peg stays as close to one dollar as possible.
DAI stability fee has seen a steady upswing in recent months and currently sits at 19.5 percent following a vote earlier this month. Token holders recently voted to decrease the fee by two percent, but the vote did not push through due to lack of voter turnout.