MakerDAO develops a sub-sanction plan

One of DeFi's main protocols is seriously thinking about developing a plan in case it gets hit by Washington sanctions.

The so-called DeFi blue-chip is one of the latest to be hit by US Treasury Department sanctions against Tornado Cash.

According to MakerDAO's discord, the company is developing an emergency shutdown plan if the contracts underlying DAI fall under Washington sanctions.

The blocklisting of Tornado wallets has called into question the decentralisation of MakerDAO's stable DAI token, as USDC heavily backs the token. "If the US government blows us up, we'll just die," Rune Christensen, founder of MakerDAO.

MakerDAO is DeFi's most extensive protocol by total blockchain value, representing 13% of the sector's total capital with $8.7 billion, according to DeFi Llama. Although its MKR token has a modest market capitalisation of $965M, MakerDAO has long been considered one of DeFi's most prestigious and influential organisations in the sector.