Maker and the DAI Backstop Syndicate
Maker and the DAI Backstop Syndicate

Maker and the DAI Backstop Syndicate

By Alfredo de Candia - 28 May 2020

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Yesterday the Maker DAO team announced some new developments for the project, including the DAI Backstop Syndicate.

This is a group of people born autonomously a few hours after the now-famous crypto crash that overwhelmed Maker DAO and its stablecoin DAI in mid-March.

This syndicate was created to support decentralized finance, starting from the Maker DAO community.

The birth of the Maker DAO syndicate

In fact, during the adverse events that occurred in mid-March, which had led to panic over the collapse of the price of Ethereum (ETH), a liquidity haemorrhage had occurred and, whilst a solution was being found, a group was born, which now counts more than 180 people.

The union is made up of all the representatives of the DeFi world such as Dharma, Aave, Eidoo, Fulcrum, Union, NewFi and others, as well as many countries involved such as China, Italy, Argentina and America.

One of the characteristics of this Backstop Syndicate is that it has created a smart contract in which an auction takes place at the price of 100 DAI for 1 Maker (MKR) and whoever contributes with DAI will receive a share of MKR when the auction is over.

Quantstamp has also voluntarily audited the related smart contract and the CEO, Richard Ma, commented:

“It was inspiring to see the DeFi community rally together so quickly to form a ‘buyer of last resort’ syndicate, starting with only 1 DAI. This reduced the barrier to participation and helped stabilize the ecosystem-essentially an emergent form of community governance.”

This shows how the Maker DAO community is very united, bearing in mind that this is the most popular project in the DeFi sector and that it has locked in almost $500 million.

Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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