According to CoinDesk: MakerDAO's $1.84 million investment in blockchain-based credit platform Centrifuge is at risk of loss due to an impending default of tokenized loans. ControlFreight, the underwriter of the distressed credit pool, warned that the pool's largest borrower is facing liquidation because of a legal dispute. The Australian Supreme Court has appointed a liquidator to unwind the company's activities, freezing all payments to debtors.
ControlFreight has minted $1.84 million of DAI from Maker to fund trade finance transactions and freight forwarding invoices. Maker's $5.3 billion stablecoin DAI is backed by debt positions overcollateralized by cryptocurrencies and tokenized versions of loans and government bonds to earn a yield. A potential loss of Maker's Centrifuge investment should not destabilize DAI, as its value is supported by approximately $7 billion worth of assets.
However, this situation highlights risks associated with the protocol's strategy to double down on real-world asset (RWA) investments, including lending to non-crypto businesses. Last month, MakerDAO halted lending to Harbor Trade, another Centrifuge tokenized credit pool manager, after $2.1 million of loans soured without payment on time.
