Paradigm participated in MakerDAO debt auction 72 times and invested 3.6 million DAI

Cryptoasset venture capital firm Paradigm has announced that it will participate in the MakerDAO auction. After the auction, Paradigm stated that it had the highest bid 72 times in 106 auctions and invested 3.6 million DAI to the MakerDAO system to purchase the governance token MKR. Paradigm is a crypto risk fund founded by Coinbase co-founder Fred Ehrsam, and has participated in DeFi-related projects such as MakerDAO, Uniswap. Lianwen has reported that MakerDAO, a decentralized financial (DeFi) loan agreement, will conduct a “debt auction” of the governance token MKR. This is the first time in the history of MakerDAO to auction off MKR to repay bad debts that are insufficiently mortgaged. Due to the sharp fluctuations in the market, the price of Ethereum plummeted, and a large number of loans fell below the mortgage threshold, which triggered a liquidation process. This liquidation process is conducted in the form of a mortgage auction. Users can obtain a secured Ethereum by bidding on DAI. The collapse, the surge in Ethereum gas fees led to network congestion, and some liquidators won the auction of the Ethereum collateral settlement program with a DAI bid of 0, which also caused MakerDAO to have outstanding debts of insufficient mortgages of $ 4 million.