The price of the MKR, the governance token of the ManufacturerDAO loan and borrowing protocol, rose in the market today after the publication of a proposal by the French investment banking giant Societe Generale, ask to borrow stablecoins using a token bond as collateral.
At 13:40 UTC, the MKR was up 7.5% in the past 24 hours to trade at $ 2,443.
The price was up even before almost the entire market rose sharply, with bitcoin (BTC) and ethereum (ETH) trading 8.7% and 7.2% respectively over the same period.
In the proposal, which was submitted to the MakerDAO governance forum by the bank’s blockchain-focused subsidiary Societe Generale – Forge (SG-Forge), details of the bond tokens were presented – with the bank saying they were issued on the Ethereum blockchain in May 2020 and could only be traded over-the-counter (OTC).
The bank, often dubbed “SocGen”, further wrote in its proposal that the bond, backed by home loans, had a fixed rate of 0% and would mature in 2025. It also has an AAA rating. among the main financial rating agencies. Fitch and Moody’s, wrote the bank.
The proposal explained in detail how the loan could be issued, with an illustration showing the proposed relationship between Maker, SocGen, SG-Forge and a proposed exchange agent.
Sharing the news on Twitter, MakerDAO founder Rune Christensen wrote that he was “amazed he has no idea” that such a demand would come, and that it shows the power of the governance model. ” post-foundation “for organizations.
In the comments section below the proposal, several members of the MakerDAO community expressed their enthusiasm for the idea.
âA big thank you to those who helped make this happen. They all know who they are, so I’m not going to dxx them unless they want public praise, âwrote PaperImperium, the DAO’s most powerful delegate with around 3% of all votes on protocol, adding:
“Maker and SocGen-Forge stand on the brink of financial history. What a time to be alive.”
“A historic day, even more for traditional lending institutions than MakerDAO,” said user luca_pro, saying the proposal calls into question how responsibilities can be shared and decentralized in an ecosystem made up of borrowers, structurers, intermediaries and financiers. âHuge thumbs up to those who have contributed,â said luca_pro.
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