USDS vs DAI : The Frozen factor

As we know that Maker Dao's Endgame plan (SKY) will update DAI to USDS, here is one factor we should know.

USDS vs DAI : The Frozen factor

In a discussion to clear up the confusion about DAI and USDS, Rune Christensen, co-founder of Sky (formerly MakerDAO), explained that the newly-formed USDS will have a freeze function just like centralized stablecoins like USDT/USDC, but DAI will remain the same as it is an immutable smart contract and cannot be changed.

Source : Rune to Wu Blockchain

My Points

  • Difficulty for hackers: If USDS gets hacked, SKY will thwart the hacker's ploy by freezing tokens and addresses, thus protecting investors by discouraging hackers. However, it is not yet known whether new tokens will be created for the affected investors in such a situation.
  • End of economic freedom: USDS will become completely centralised. Just like Tether is freezing USDT that are used by US restricted regions, enterprises, and individuals; USDS will also start controlling its users according to the government’s decisions.

USDS's importance is limited to centralized exchanges only, I will not take it in my wallet, I would prefer to keep wallet addresses away from such protocols which are able to freeze your assets.

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Web223 Channel.Here’s where we drop all the tech & marketing shit. Think Product Hunt but for Grill. We're talking... Show More