Quote from: yat97 on Today at 05:28:25 PM

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It is because USDC is one of the DAI reserves. The reason why algorithmic stablecoin works is because another token or coin backs its value. Since USDC got a hit, it is expected DAI will go down.

As of now, MakerDAO who governs USDC make new proposal to limit USDC exposures within its reserves and make a new changes to their protocol to limit other reserve that might get a hit if the current Silicon Valey Bank and Silvergate contagion spiraling out of control. You can take a look at the proposal here: https://forum.makerdao.com/t/emergency-proposal-risk-and-governance-parameter-changes-11-march-2023/20125.