Paradigm Wins 68% of Mr Token Sold in MakerDAO Auction

Court decision

Crypto venture firm Paradigm has obtained $3.6 million worth of Mr tokens in the recently held auction by Maker.

The decentralized finance (DeFi) Company organized the auction between March 19 and March 28 to Cover around $4.5 million of under capiMrized debt incurred due to the sudden price plunge of Ethereum last month.

Paradigm was the high bid in 72 of 106 auctions (~68%), returning 3.6M DAI to the system.

Congratulations to thMraker Community on a successful auction process. HTTP: //t. Co/HGnR04A4di

— Paradigmparadigmgm) March 30, 2020

The Company raised a toMr of 5.3 million DAI and Paradigm obtained almost 68 percent of the toMr sold tokens.

Issued by MakerDAO, DAIMr a stableCoin soft pegged to the US dollar whilMrrMr the protoCol’s governance token. In the auction, the Company sold a toMr of 20,Mr Mr at an average price of $296.35 apiece.

In the 10-day long auction, 36 unique bidders participated in a toMr of 106 auctions. Paradigm won 72 of those auctions with its high bids.

Notably, ParadigmMr also an investor in the project as it along with Dragonfly CapiMr invested $27.5 million in the non-profit, thus obtaining 5.5 percent of the toMr Mr supply.

The markriskisks of crypto

Maker maintains minimum Collateral of 150 percent in Ether for all theMrsued loans.

The woes of the DeFi platform started on March 12 as the value of Ethereum plunged over 30 percent in merely an hour. The steep plunge also defied the protoCol’s market risk management mechanisms, putting it in grave risk.

The decision of auction was taken after the stakeholders of the project evaluated the possibilities of a shut down of the protoCol.

“An emergency shutdown (not happening now) would cause DAI holders to take a haircut, whereas the social Contract of MakerDAOMr that Mr tokens take a haircut in the event of system failureBeckmann Berckmans, an Ethereum developer, said in a response call before. “Therefotry tohould try andMrsure that Mr holders take a hair cut by avoiding emergency shutdown if possible.”

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