MakerDAO has launched Multi-collateral DAI (MCD). This token refers to the new DAI that is collaterized by multiple assets.
MKR is a cryptocurrency depicted as a smart contract platform and works alongside the Dai coin and aims to act as a hedge currency that provides traders with a stable alternative to the majority of coins currently available on the market. Maker offers a transparent stablecoin system that is fully inspectable on the Ethereum blockchain. Founded almost three years ago, MakerDao is lead by Rune Christensen, its CEO and founder. Maker’s MKR coin is a recent entrant to the market and is not a well known project. However, after today it will be known by many more people after blowing up 40% and it is one of the coins to rise to prominence during the recent peaks and troughs.
MakerDAO approved a vault that will allow the Pennsylvania bank to Huntingdon Valley Bank borrow USD $100 million in the DAI stablecoin.
- MakerDAO has made an agreement with the bank Huntingdon Valley Bank.
- The bank will have access to a vault and will be able to borrow in DAI.
- A unique opportunity for MakerDAO in the real world.
A new bridge between DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. and real-world finance.
MakerDAO a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. (DeFi) based on Ethereum a decentralized open-source blockchain with smart contracts functionality. has approved the U.S. regulated regulation is when something is controlled by a specific set of rules. bank, Huntingdon Valley Bank ( HVB) , to open a digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. vault.
According to The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.the vault will function as a system that will allow the bank to borrow up to USD $100 million in the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. DAI The company, a native of the protocol, after depositing loans outside the chain as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. on its balance sheet.
The community of MakerDAO has beenvotando la propuesta of the bank over the past few days. The chain governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. proposal was approved on Thursday, after obtaining more than 87% of the total number of delegate votes.
As a result, the bank founded in 1871 will now be able to borrow at DAI to support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. new and existing operations. The Pennsylvania-based bank will be able to borrow up to USD$100 million, with a debt limit that will grow to USD$1 billion over the next 12 months, according to the bank.The Block.
MakerDAO partners with a traditional bank
The mediumThe Defiant explains thatHuntingdon Valleywith $500 million in assets, plans to leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. the vault for mortgage lending in commercial real estate investments, construction financing secured by real estate, secured debt and credit provided to private equity equity is the funds that would be returned to a company's shareholders if all of the company's assets were dissolved and all debts were paid off in the event of liquidation. funds and lender clients.
Mientras permitirá al banco respaldar sus operaciones comerciales, se espera que la bóveda también genere un rendimiento estimado del 3% para MakerDAO to be followed by the official proposal.
According to reports, a Delaware-based trust company named MakerDAO Bank Participation Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. The bank’s loan assets will be co-administered by the bank on behalf of MakerDAO .
In the opinion of Hugh Ragsdale, a spokesman for real-world assets from MakerDAO who spoke with The Block The partnership with the US bank will help link DAI with traditional finance and thus strengthen the use of stable currency.
HVB’s proposal enhances MakerDAO’s balance sheet and reputation. On the financial side, Maker achieves an out-of-the-box, diversified, wholesale solution to generate revenue from real-world (crypto-uncorrelated) assets.
The community’s response
In a online forum the delegate of MakerDAO , identified as ‘GovernanceHouse’had already stressed that the move represented a very important step for the protocol to connect with the traditional financial system and use DAI in unsecured lending.
“ I like the approach to establish a partnership that can be scaled to other institutions and standardized. “, he had commented, as quoted byThe Defiant. He added that it is a product that “any financial institution can take advantage”.
However, while many applauded the effort, not everyone in the MakerDAO seemed to support the initiative. Chris Blec, a delegate who voted against the proposal and who spoke withThe Block on this matter, he expressed his concerns that the deal could carry regulatory risks.
There is an existential risk that any of these third-party deals pose to MakerDAO in the context of the current regulatory climate [in the U.S.]. What happens if a regulator forces this bank to freeze everything, cut ties with the DAO decentralized autonomous organization, system of rules that define how a decentralized organization should operate and which actions it should take. and take all the money?
Others also expressed skepticism that the regulated financial institution would turn to a decentralized protocol for such an arrangement, when it could turn to a traditional financial institution, as reported byThe Defiant.
An opportunity for MakerDAO
Despite the criticism, the agreement could represent a great opportunity to MakerDAO and to open up new meeting points between DeFi and traditional finance.
Founded in 2014, MakerDAO is the issuer of DAI, a decentralized stablecoin, and a complete DeFi ecosystem that offers services such as lending, savings and cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange. More recently, the protocol has developed a strategy of diversifying its treasury into real-world assets (RWA), which include U.S. Treasury bonds.
Article by Hannah Estefania Perez / DiarioBitcoin
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