MakerDAO Rejects $100 Mln Loan to Cogent Bank


28 February 2023 13:04, UTC


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The decentralized autonomous organization responsible for issuing the DAI stablecoin, MakerDAO, has refused to loan $100 mln to Florida-based bank Cogent Bank. A financial institution with assets of $1.2 bln intended to use the funds to extend loans to its corporate clients.

According to the information published on the MakerDAO governance site, it was the MAKER token user community that made this decision as a result of a vote. The vote showed that almost 73% of those who voted did not support the loan request submitted by the bank.

This decision by the MakerDAO community contrasts with a loan made by MakerDAO to Huntindong Valley Bank (HVBank) in August 2022. The proponents of the protocol then approved $100 mln in DAI funding, which was provided through the RWA Master Participation Trust.

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