<\/p>\n
MakerDAO, the second-largest DeFi lending protocol, plans to shut down the credit vault launched for a subsidiary of Societe Generale, France’s third-largest bank, after the firm paid down its debts last month.<\/p>\n
The governance proposal<\/a> is one of several that Maker’s community began voting on yesterday. If passed, Maker will reduce the debt ceiling for SG-Forge’s vault to 0 DAI, meaning the firm cannot take out new loans using the protocol.<\/p>\n Last month, an SG-Forge representative posted on Maker’s forum that SG-Forge had repaid its debt.<\/p>\n “The overall transaction was a success,” the representative said<\/a>, \u201cIt has demonstrated that on-chain refinancing markets could be opened to real money asset owners, in full compliance with banking standards, with potentially significant improvements in financial terms, operational efficiency, settlement, and counterparty risks.\u201d<\/p>\n The news comes as MakerDAO actively seeks to limit its exposure to real-world assets (RWAs) in line with its controversial \u201cEndgame<\/a>roadmap.<\/p>\n MakerDAO’s Real World Finance Core Unit worked with SG-Forge on pitching a 30M DAI<\/a> Credit line for SG-Forge to the Maker community in June 2022.<\/p>\n The vault was launched in August, with SG-Forge providing a 40M Euro bond in the form of OFH tokens \u2014 tokenized securities backed by AAA-rated home loans. The move came as Maker was seeking to expand its revenue streams derived from real-world assets.<\/p>\n In July 2022, the Maker community voted to investing<\/a> 400M DAI in short-term US treasuries and 100M DAI in corporate bonds. The following month, Maker opened a 100M DAI. credit line<\/a> to Huntingdon Valley Bank, a 151-year-old traditional bank.<\/p>\n SG-Forge didn’t access the credit line until January of this year, when it withdrew $7M in DAI from MakerDAO.<\/p>\n SG-Forge acknowledged that the utility of its OFH security token was hindered by illiquidity. In the event of a liquidation, the firm would have needed to execute actions manually to meet the margin calls.<\/p>\n \u201cWe will continue working on expanding Security Tokens refinancing by scaling such DeFi solutions,\u201d the representative said. SG-Forge added that it will closely monitor MakerDAO’s endgame roadmap to evaluate future business development opportunities moving forward.<\/p>\n Other live proposals include measures to reduce the debt ceilings for Maker’s YFI, LINK, and MATIC vaults to 0 DAI, and significantly increase the fees for its WBTC and GNO vaults to 4.9%.<\/p>\nReal World Assets<\/h4>\n
Successful Transaction<\/h4>\n
Changes at Maker<\/h4>\n