MakerDAO Introduces Real-World Assets to Governance Polls

News / 09.06.2021

A governance poll has been established on the MakerDAO decentralized lending platform regarding the inclusion of different types of collateral beyond the realms of crypto. The Poll will be open for three days, starting on Monday, June 7 at 16:00 UTC.

The governance poll allows the MakerDAO governance community to signal support or opposition to adding different proposals for various vaults with tokenized digital assets based on real-world assets (RWA).

Each proposed asset has varying collateral parameters like the Dai debt ceiling, stability fees, and collateralization ratios.

Four newly proposed real-world assets will be used as collateral for Dai minting. Currently, MakerDAO supports a range of crypto assets as collateral for its stablecoin production.

Real-world assets

The new real-world assets include a ConsolFreight DROP Token (CF-DROP). ConsolFreight is a software as a service (SaaS) freight technology provider that focuses on digital transformation and integrating a network of entities engaged in international trade. 

The Asset Originator can use Maker as a credit line to originate new loans against both its tokenized freight invoices and trade financing solutions.

The next token in the proposed list is a Peoples Company Series 1 DROP Token (P1-DROP) based on U.S. agricultural real estate. It is considered a comparatively safe asset.

Marker recognizes rented farm properties are quite a safe asset compared to other MakerDAO RWA collateral at this time. In addition, the price for crops supports farmer profitability at this time.

The Harbor Trade Credit DROP Token (HTC-DROP) is the third list of proposed real-world assets.

Harbor Trade Credit is a supply chain financial provider of trade payable financing programs to corporate buyers via its proprietary platform. Harbor offers buyers liquidity via trade credit and suppliers fast access to working capital.

Lastly, a Fortunafi DROP Token (FFT1-DROP) is the last RWA proposed as Maker vault collateral.

Fortunafi is a fund management firm collaborating with Centrifuge as a token issuance platform. In the beginning, it focused on revenue-based financing as an asset class.

Centrifuge operates a platform called Tinlake that enables asset originators like the four above to use tokenized real-world assets as collateral to obtain liquidity from the DeFi ecosystem.

MakerDao Price Update

MakerDAO has witnessed a surge in the prices of MKR in 2021. MKR has surged by over 100% and hit a high of $3000 on February 20, 2021, since the year began. The surge has been attributed to increased demand for stablecoins, exceptionally decentralized ones such as Dai. According to Coinmarketcap. The total Dai currently in circulation is at record levels of $2.6 billion.

MKR was trading at $3,235 at the press time, down a painful 42% over the past 30 days. At the end of May, MakerDAO introduced its multi-chain strategy roadmap for the future.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.