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The Makerdao and the stablecoin DAI has been a popular project in the decentralized finance (defi) space and it\u2019s also had its share of problems. This week the project called Bprotocol leveraged a defi flash loan in order to sway a Makerdao governance vote. The development team behind the Maker project aims to make it harder for problems like defi flash loans going forward.<\/strong><\/p>\n Since the project\u2019s inception, Makerdao<\/a>, often referred to as Maker, has been a defi project that has seen a lot of demand. The Maker project is responsible for creating one of the first decentralized stablecoins called DAI, which leverages overcollateralization and oracles to hold a peg.<\/p>\n DAI is used on exchanges and is regularly used within the defi world on various applications like Compound, Uniswap<\/a>, and Aave<\/a>. The project has also seen a number of issues over the years and skeptics have questioned the integrity<\/a> of the Makerdao protocol.<\/p>\n A few examples include the stablecoin having issues holding its $1 peg,<\/a> as there have been various votes held to address the issue. Then on March 12, 2020, otherwise known as \u2018Black Thursday,\u2019 the Maker project had major difficulties<\/a> when the price of ETH<\/a> crashed, as many Collateralized Debt Positions (CDP) were ravaged.<\/p>\n This caused the Maker project to get sued in a class action lawsuit,<\/a> which is still ongoing. This week the crypto community has been complaining about Makerdao\u2019s recent governance ballot<\/a>, which saw the Bprotocol project sway a Maker governance vote.<\/p>\n Basically, by leveraging the controversial flash loan process, Bprotocol used an uncollaterized loan to borrow roughly $7 million worth of MKR<\/a>. With the requirement to vote with MKR<\/a>, the flash loan made it so Bprotocol could influence the poll a great deal.<\/p>\n Another vote is taking place to tackle the issue, so it won\u2019t happen again including raising the amount of MKR<\/a> needed to apply governance stake. Makerdao\u2019s governance coordinator, \u2018Longforwisdom,\u2019 and other community members conversed about the topic in a Maker forum discussion called: \u201cUpdates \u2013 Flash Loans and securing the Maker Protocol<\/a>.\u201d<\/p>\n \u201cAs promised, I\u2019m providing an update now [that] the current hat exceeded 100k MKR<\/a>,\u201d Longforwisdom wrote. \u201cAs mentioned previously, the contents of this spell are as follows:<\/p>\n The flash loan has Maker community members concerned that a malicious governance attack could severely hurt the project. Increasing the MKR<\/a> requirement and the deactivation of the two modules may only lead to a temporary bandage.<\/p>\n Alongside this, crypto community members also wonder if other Ethereum-based defi governance protocols can be gamed by an uncollaterized flash loan.<\/p>\n What do you think about the Bprotocol swaying the governance vote using a flash loan? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n The post Uncollaterized Power: A Makerdao Governance Vote Was Swayed by a Defi Flash Loan<\/a> appeared first on Bitcoin News<\/a>.<\/p>\n![\"Uncollaterized](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2020\/11\/46votwers.jpg\" "\\"Uncollaterized")
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