DAI stablecoin issuer MakerDAO’s group has determined to halt lending to a tokenized credit score pool on the Centrifuge protocol after accruing $2.1 million of mortgage defaults.
In a governance vote that concluded Thursday at 12 p.m. (ET), voters unanimously favored stopping extra lending to the embattled credit score pool, managed by fintech agency Harbor Commerce. Maker is led by a decentralized autonomous group (DAO), the place those that maintain MKR tokens can take part in governance choices.
“Whereas Harbor Commerce has verbally dedicated to stop extra attracts and voluntarily wind down the vault, group members have expressed concern in regards to the current 7 million Debt Ceiling and the chance of probably growing publicity to this vault,” a MakerDAO governance publish stated.
Maker’s $4.5 billion stablecoin DAI is backed by debt positions overcollateralized by cryptocurrencies, and more and more, tokenized variations of loans and bonds, to earn a yield.
The Harbor Commerce credit score pool minted some $1.5 million of DAI stablecoins from MakerDAO and secured them with loans made to a shopper electronics agency. The borrower agency did not pay down $2.1 million of debt matured in April.
Harbor Commerce is “actively engaged within the exercise course of” and forecasts “a significant or full restoration,” in line with MakerDAO, however the process might take six months or extra.
