Skip to main content

Maker DAO becomes a decentralized central bank



 Is this the long-awaited marriage of traditional finance and crypto? The traditional French bank Société Générale, or rather its subsidiary SG Forge, has submitted an application to Maker DAO to be allowed to deposit its own OFH token as collateral for a loan of 30 million DAI. With 83.16 percent of the votes, a majority of those entitled to vote spoke in favor of the motion . This means that nothing stands in the way of the first DeFi loan for a traditional major bank.



The fact that the decentralized organization accepts the bank token OFH as collateral for the loan, which is oversecured at 40 million euros, is historic. There has never been a comparable process before. The OFH token is a $100 million Société corporate bond that the group launched on the Ethereum blockchain in 2019. The structure of these securities with a Moodys rating of AAA is rock solid. At 0 percent, however, they offer no return.


Is the maker central bank going to school?

The transaction is therefore an attempt by representatives of the traditional financial sector and the crypto sector who are keen to experiment. Two things are new and worth mentioning about the transaction: On the one hand, Maker is open to accepting collateral such as the OFH token - rather unusual in crypto circles. Depositing bitcoin or ether derivatives such as wrapped bitcoin is common.


On the other hand, and this is the crucial point, Maker advances here to a quasi-central bank. After all, the USD 30 million in DAI stablecoin did not exist before the transaction. Similar to the ECB, Maker creates money out of thin air .


In the end, granting the loan is a zero-sum accounting game with enormous complexity. But if the deal works out, and it looks like it does, then Société Générale has landed a new investor with the decentralized organization, with whom liquidity bottlenecks can be circumvented in the future.


At 83.16 percent, the popularity in the maker community is outstanding. The voter ARCEinvest writes :


There comes a time when the "real world" needs us more than we need them. I am delighted that this innovative collaboration has come about. The timing couldn't be better to show the world that there is serious work in DeFi, with credible players still interested in the solutions that only MakerDAO can provide.


It is not the first step into the crypto sector for Société Générale. In February , we reported on tokenized securities issued by the bank in Luxembourg.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin...
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne...
Post a Comment
Read more

Bored Ape Yacht Club NFTs stolen through phishing on Instagram

  Bored Ape Yacht Club ( BAYC ) developers announced on Monday that hackers have hijacked the official Instagram page of the popular NFT collection and posted links to a fake airdrop. Crypto enthusiasts who connected their MetaMask wallet to the rogue website subsequently had their Ape NFTs stolen. Apparently, the attack was planned to coincide with the one-year anniversary of the BAYC collection. This increased the "perceived credibility" of the phishing link. About 100 NFTs are said to have been stolen in the phishing attack . According to CoinGecko data , the minimum price for a BAYC NFT is 139 Ether ( ETH ) or $400,726. So if reports are correct, over $40 million worth of NFTs were stolen in the attack. These numbers are only the lowest estimate, however, as they are based on the lowest price.  At the time of writing, it was still unclear how the hackers gained access to BAYC's official Instagram account. Social media users have pointed out the importance of two-fact...
Post a Comment
Read more