Stablecoin issuer MakerDAO will conclude extra lending to a Harbor Exchange tokenized credit pool on the Centrifuge protocol, following a unanimous community vote that concluded on Thursday.

The votes had been on a proposal to decrease the debt ceiling for the Harbor Exchange Credit pool to zero, successfully halting any extra lending.

In accordance with a post on Maker’s governance forum, Harbor Exchange had minted $1.5 million fee of DAI stablecoins and secured them $2.1 million fee of loans made to a single borrower.

The borrower in ask is an unnamed user electronics company, which defaulted on its loan duties to Harbor Exchange in April.

“Now we possess spoken to Harbor Exchange to study more about the causes within the aid of this default as well to their contrivance for getting better label arresting forward,” defined a member of Maker’s Strategic Finance (SF) core unit within the protocol’s Right World Asset portray published earlier this year.

The Harbor crew acknowledged that they had been optimistic about receiving a pudgy or meaningful restoration, but believes the job might seize longer than six months.

Even supposing Harbor committed to voluntarily wind down the vault, a 7 million debt ceiling that became as soon as in reputation led to concerns about the probability of with out doubt rising exposure to it.

Moreover, a member of the SF core unit pointed out that the pool didn’t possess ample turnover to generate a statistically well-known default fee, and became as soon as on the whole better probability in nature, to extra arguments in desire of reducing the debt ceiling to zero.