Cryptocurrency

MakerDAO allows the use of non-cryptographic guarantees of loans


Key facts:

The vote to approve the proposal was made on June 8, 2020.

In the future there will be a vote to add the new code to the contract smart Ethereum.

The community of MakerDao authorized, by ballot, the use of commercial invoices symbolic and royalties of music streaming as a guarantee for loans of stablecoins.

According to The Block, it would be the first time in the history of the ecosystem of cryptocurrencies used assets of the physical world as a guarantee for loans of cryptocurrencies. The vote of the community noted the support expressed for the proposal that is headed by Centrifuge; the project that developed the protocol and will allow the user to issue tokens ERC-20, which generate interests.

The vote culminated this June 8, and opens the way for such tokens can be used for coining the stablecoin DAI. The vote also affirmed the support of the community for the token ZRX 0x, the token FLOWS of Decentraland, and the tBTC, the token Uniswap, as collateral on the platform of MakerDao.

Using the practicality of the protocol, Centrifuge allied with Paperchain and ConsolFreight to tokenize royalties for transmission of music and commercial invoices. The tokens of PaperChain and CosolFreight will be the first that are not of source cryptographic and used as collateral for loans of stablecoins.

The future vote to add the code to Etherum

Centrifuge, Paperchain and ConsolFreight now will work to achieve to determine what will be the oracles that will be used. They should also establish what will be their risk models to follow, and to review the security used for the contract smart on your business model.

As stated by Lucas Vogelsang, CEO of Centrifuge to a means of communication, this work will take between 1 week and two months. After you fulfill the above objectives, there will be a second vote to determine if we should add this new code to the contract smart in the blockchain of Ethereum.

In the past the community of cryptocurrencies has questioned the system of governance of MakerDao. Despite the signs, MakerDao has rejected the proposals to solve the problems of governance existing in your system.

Adam Cochran, a teacher, analist, and a former marketing executive of Dogecoin, said in the past about the caution that needs to happen with DAI. In April, Cochran said, through his Twitter account, which DAI could be considered as a risk for the ecosystem of finance decentralised (DeFi).

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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