MakerDAO has nearly wrapped up its first-ever debt auction—an event designed to cover millions of dollars in bad debt triggered by the ether flash crash on March 12. It seems that those who participated in the debt auction early got a bad deal compared with those who waited to take part later.
A major reservation with accepting USDC as collateral lied in how the stablecoin is centralized. This is a significant departure from Maker’s stance of ensuring DAI is only backed by decentralized assets—as USDC is the brainchild of Coinbase and Circle, major players in the crypto industry. As MakerDAO’s (now out of date) white paper noted: “Unlike other Stablecoins, DAI is completely decentralized.”
Decentralized finance giant MakerDAO has been holding crisis talks after dramatic falls in the price of Ether left debt worth about $4 million under-collateralized.
Banking giant JPMorgan is said to be in talks with ConsenSys to merge the Ethereum venture studio with its in-house blockchain unit Quorum, according to a report in Reuters.