Paradigm, the crypto venture firm, in a recent auction done by Maker, won a total of $3.6 million worth of MKR. The decentralized finance (defi) company held the auction over nine days, from March 19 to 28th in a bid to cover approximately $4.5 million of undercapitalized debt, which it had to face given the plummeting of Ethereum in the previous month.
<h2>Paradigm a Clear Winner</h2>
Maker was able to raise a decent amount, a total of 5.3 million DAI and the venture firm paradigm obtained a massive 68 per cent of it.
<blockquote class="twitter-tweet">
Paradigm was the high bid in 72 of 106 auctions (~68%), returning 3.6M DAI to the system.
Congratulations to the Maker community on a successful auction process. <a href="https://t.co/HGnR04A4di">https://t.co/HGnR04A4di</a>

— Paradigm (@paradigm) <a href="https://twitter.com/paradigm/status/1244767413104590849?ref_src=twsrc%5Etfw">March 30, 2020</a></blockquote>
MakerDAO issues DAI, a stablecoin tied to the US Dollar. The protocol's governance token is MKR. 20,980 MKR were sold by the owners, averaging a price of $296.35 at the time of selling. A total of 106 auctions were done with 36 bidders making up the numbers over a ten-day period. Paradigm racked up the numbers and won a total of 72 bids.

A 150 per cent minimum collateral in ether is maintained by makers in issued loans. Things turned bad for the DeFi platform when Ettereum went down by 30% in an hour. It put the protocol at substantial risk, and so they decided to announce an auction. The stakeholders of the protocol were fearful that this might lead to a complete shutdown of the protocol and ergo, agreed that an auctioning is the best idea.

Ryan Berckmans, a developer of ethereum, suggested that an emergency shutdown which was on the cards before but not now" would cause DAI holders to take a haircut, whereas the social contract of MakerDAO is that MKR tokens take a haircut in the event of system failure".

Therefore, he holds the view that they should ensure no emergency shutdown happens by making MKR holders take a pay cut.

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Paradigm Obtains $3.6 Million Worth MKR tokens in Auction by Maker

Paradigm obtained almost 68 percent of the total sold MKR tokens, in the auction by Makers which lasted ten days from March 19th to March 28th.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Paradigm Obtains $3.6 Million Worth MKR tokens in Auction by Maker

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