MakerDAO Considering a $3.5 Billion $ETH Market Buy

Yearn.finance's core developer banteg tweeted that MakerDAO is considering a $3.5 billion $ETH market buy, converting all $USDC from the peg stability module into $ETH. Ethereum co-founder Vitalik Buterin said this seems like a risky and terrible idea. If $ETH drops a lot, value of collateral would go way down but CDPs would not get liquidated, so the whole system would risk becoming a fractional reserve.