After $2.1 million in loan defaults, the MakerDAO community, which issuing DAI stablecoins, has opted to stop lending to a tokenized credit pool on the Centrifuge protocol.Voters in a governance vote that ended at noon (ET) on Thursday overwhelmingly supported suspending further lending to the troubled credit pool, which is run by fintech company Harbor Trade.Holders of MKR tokens can participate in the decentralized autonomous organization (DAO), which governs Maker.
“While Harbor Trade has verbally committed to cease additional draws and voluntarily wind down the vault, community members have expressed concern about the existing 7 million Debt Ceiling and the risk of potentially increasing exposure to this vault,” a MakerDAO governance post said.
To produce a dividend, Maker’s $4.5 billion stablecoin DAI is backed by debt positions that have excess cryptocurrency collateral. Tokenized loans and bonds are also becoming more common.
DAI stablecoins worth $1.5 million were created by MakerDAO and issued by the Harbor Trade credit pool. These coins were backed by loans given to a company that makes consumer electronics.Debt due in April for $2.1 million from the borrower company was not repaid.According to MakerDAO, Harbor Trade is “actively engaged in the workout process” and anticipates “a meaningful or full recovery,” but the process might take up to six months.