GROK: (summary)
The situation remains fluid. Bottom line from CrusherHODL’s latest work:
pDAI’s supply and market liquidity were significantly inflated by a sophisticated operation that created fake collateral, drew enormous amounts of pDAI, deployed it as working liquidity, and then froze the governance layer. This is not a simple rug or extraction — it is an attempt to bootstrap activity on a forked chain using unbacked tokens.This makes a credible, sustainable $1 peg significantly more challenging in the near-to-medium term, as it requires either:
Major unwinding/restructuring of this liquidity
Genuine new organic demand that overcomes the fabricated base
Or external intervention