MakerDAO: Curve 3pool and Other Factors Reduced Dai Supply by 2.2 Billion over the Past Two Weeks, but Dai Peg Is Safe

MakerDAO tweeted that Dai supply decreased by 2.2 billion over the past two weeks. Several Maker Vaults were closed and the Protocol experienced +200 liquidation auctions of risky collateral. Specifically, the Maker Protocol executed 257 liquidation auctions during the last two weeks. These liquidations helped the Protocol cover 28.4 million Dai in risky debt. On top of that, the Protocol accrued 3.7 million Dai in Penalty Fees. In addition, MakerDAO indicated that the recent drop in Dai demand came from 3 main sources: contraction of Curve 3pool, reduced mining rewards for Dai on Avalanche, and the largest Vault owners reducing their Dai debt positions. However, the Dai peg is safe. There are still 2.4 billion USDC and 46 million USDP in PSM reserves. The Maker Protocol has +$10 billion in TVL.