Makerdao, a decentralized autonomous organization (DAO) that issues stablecoin DAIs, approved a governance vote to provide “collateral consolidation from a US-based bank.” Makerdao’s governance vote passed by a majority vote of more than 87%, providing a means for U.S. financial institution Huntingdon Valley Bank to leverage its stablecoin vaults.
Huntingdon Valley Bank to Use Makerdao’s Stable Coin Vault System for Off-Chain Loans – RWA-009’s initial debt limit is $100 million
according to.Makerdao Governance VoteBreakdown– Community Approves Collateral Consolidation. The community approved a proposed collateral consolidation with Pennsylvania-based financial institutionHuntingdon Valley Bank. . Makerdao discussed the proposal on July 4, 2022, noting that the RWA-009 concept would be the first of its kind in the decentralized finance (defi) world. The term “RWA” as used in Makerdao’s proposal stands for “real world asset.”
“The first collateral consolidation from a US-based bank in the defi ecosystem is coming up,” the project’s official Twitter accountexplained.” Maker Governance votes to add RWA-009, a $100 millionDAIdebt ceiling participation facility proposed by Huntingdon Valley Bank, as a new collateral type for the Maker Protocol ” added the team.
In aTwitter threadpublished at the end of March 2022, Makerdao detailed how the scheme would work, as it would allow Huntingdon Valley Bank (HVB) to borrow DAI by pledging HVB’s participation loans as collateral. Explanation.” The application also requested an initial debt limit of $100 million in Huntingdon Valley Bank Participated Loans, spread across all proposed loan categories, to be rolled out over a period of 12 to 24 months from inception,” Makerdao said at the time.
Makerdao also clarified that HVB will be the first bank to enter into the project’s “Master Purchase Agreement,” but that the project fully intends to “bring in more banks in the future.” The project’s stablecoinis DAIis the fourth largest stablecoin project in terms of market valuation at $6.48 billion.
In the past seven days, Makerdao’s native crypto assetshave gained 2.5% in MKRagainst the USD, but year-to-datethe MKRis down over 65%. At $921 per unit at the time of this writing, DAO’s native cryptois still up 448% from the all-time low of $168 per unit recorded on March 16, 2020, when MKR
In terms of Defi’s dominance, Makerdao commands a touch over 10% of the $75.54 billion locked value of the entire Defi ecosystem.Makerdao’s total locked value today (TVL) is $7.56 billion, 4.38% over last month Decrease.
The recently passed governance proposal with HVB follows Makerdao’s plan to introduce layer 2 (L2) scaling support from Starknet at the end of April. Makerdao’s team is working with Zero Knowledge (ZK) Starknet, a roll-up solution, will allow forDAItransfers, stating that DAItransfers are much cheaper than on-chain rates.
Members of the Makerdao community have been interested in leveraging real-world assets for their projects for quite some time. Hexonaut, Makerdao’s protocol engineer, explained in mid-March 2022 that the DAO “needs to take the next step and start integrating with the real world at scale. “Huntingdon Valley Bank contract uses off-chain loans representing real-world assets (RWAs) collateralized by a Montgomery County-based Pennsylvania bank.
What do you think about Pennsylvania Bank using Makerdao to access DAI? Do you envision crypto being integrated with more real world assets in the future? Let us know your thoughts on this topic in the comments section below.
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