DeFi voters in the MakerDAO virtual community are heading to the polls, to decide if real world assets should be supported as a form of collateral on the platform and eligible to release the system’s DAI stablecoin.
MKR holders are voting on the admission of “tokenized freight invoices” as collateral for DAI, in cooperation with a pilot program from ConsolFrieght to digitize contracts. With fewer than four days left of voting, and with an overwhelming 96% “Yes” so far, it seems likely to pass.
The token, known as CF-DROP, essentially allows leverage to be taken against the future delivery of real-world commodities. Explained in full here, the DROP token is actually one of two separate tokens on the ConsolFreight system, which together distribute the risk of failed delivery against two different levels of risk/return.
DROP, being the less risky of the two, was the one chosen for including in MakerDAO.
According to the breakdown linked above, the assets in question have an average value of $5,000, maturity periods of 30-45 days, and a less than one percent chance historic rate of default.
This new foray on the MakerDAO system into physical assets has come quickly on the heels of the adoption of more digital assets on the platform, beyond the original sole Ethereum (ETH) asset. CryptoGlobe recently reported that the issuing of Wrapped Bitcoin (WBTC) has exploded since being admitted as a source of collateral.
There are currently ten assets up for vote, to add to the MakerDAO system.
Featured Image Credit: Photo via Pixabay.com