Wyre and Bloqboard Introduce New MakerDAO CDPs OTC Crypto Trading for DAI and MKR
The Wyre, which is blockchain enabled exchange and payment company, together with the Bloqboard, which is a non-custodian blockchain asset lending platform have just gone ahead to announce a new market to the current open financial system.
All this is by adding the ability to quickly repay the large MakerDAO CDPS and also be able to sell them in a trade that can take place over the counter.
With the platform allowing the CDP holders to easily extract their own collateral without the need to source the MKR or the DAI within the open market, then the Wyre and Bloqboard will be able to offer an efficient and secure method that could be used in closing the CDPs.
A Lot to Get From the CDPs
For the trades to be effectively facilitated on the system, the Wyre will need to pay down the MKR and DAI owned in their users CDP, and after this be able to return the CDPs collateral straight to the user, all this is done minus the liquidity discount. For the users that will be able to have a CDP that is just over the 200,000 DAI drawn they will be able to visit the Bloqboard to be able to initiate the trade effectively.
There are several use cases that have slowly emerged for the CDP in just the past year, with some of them being able to utilize the MakerDAO system to ensure they are able to free up the needed working capital. This is to provide they are able to fund the ongoing expenses, while the other will be utilizing the system to be able to lever up their current investment.
For the secondary market for the CDPs, it will allow the users who have already gone ahead to spend the proceeds of their loan; this is in the extraction of the remaining value that has been sued for the collateral in just one transaction.
With the company being able to offer this kind of flexibility, it is clear the CDPs will become a more practical option this is when it comes to the wide range of purposes in the market. Additionally, it can be used at a much larger scale than what is being enabled by the immature crypto market.
The platform has ensured that one of these trades that are done are similar to OTC trading. And from here the company is planning on building a trust minimized together with a secondary automated market that can be used for the CDPs.
Smart Contracts for the Collateralized Debt Position
Any individual that has some collateral assets they will be able to leverage them in order to generate the Dai straight to the Maker platform. All this will be done through the unique smart contracts that are known as the Collateralized debt position.
A collateral asset has been considered to be a digital asset the current decentralized Maker Governance will be able to some input into the current system.
The CDPs are able to hold the collateralized assets that have been deposited by a user, and from here it is able to permit the user to generate the Dai efficiently. But it is important to note that creating the Dai will also be able to accrue some level of debt. With this debt in place it will lock the deposited collateral asset inside the current CDP, it will be kept here until the equivalent amount of the Dai has been paid back. And at this point once the amount has been paid the owner will be able to withdraw their collateral easily.
Wyre and Bloqboard introduce secondary trading for CDPs. This allows large holders to repay their debt in an OTC trade without acquiring DAI or MKR in the open market. https://t.co/k4mgXjEAcf
— Wyre 📡 (@sendwyre) March 11, 2019