MakerDAO refused to compensate for losses due to disruptions during …

MakerDAO Refuses to Compensate for Disruptions During March Collapse

MakerDAO, which manages the DAI algorithmic stablecoin, voted among Maker (MKR) token holders, following whom It was received decision not pay compensation to owners of storage facilities who have suffered losses in collapse time market March 12-13, writes The block.

38 MKR holders took part in the voting, holding a total of 88 000 tokens. Over 57,000 MKR or about 65% of the total number of votes It was given away against compensation.

MakerDAO refused to compensate for losses due to disruptions during ...

Vault owners play a key role in the Maker system and allow DAI to be released against collateral. In time the March collapse, many of them lost security due to a sharp decline in the price of Ethereum. March 12 price Ethereum dropped to $ 88. Liquidation of positions must was carried out at a rate of about $ 100, but oracles maker failed timely update quotes in the ETH-USD pair, faced with congestion networks and high commissions.

In these conditions, participants launched the auction protocol managed to buy a significant part of the collateral for zero price, and many storage owners completely lost money.

“The owners of the vaults received on $ 2.5 million less than collateral, than we could, if if the auctions work perfectly, – stated one of participants community MakerDAO due to today’s decision. – Opponents took advantage of winning auctions with artificially low bids “.

In April, a lawsuit was filed against the Maker Foundation, in which the creators of the protocol are accused of not providing full information. about the existing risks. Plaintiffs expect to recover from the Maker Foundation and several related persons over $ 28 million.

MakerDAO refused to compensate for losses due to disruptions during ...