MakerDAO has successfully launched its first debt auction, and bidders have committed to purchasing Maker (MKR) at a minimum of $2 million in Dai (DAI).

The organization hopes to fill the gap estimated at millions of dollars in the collateral supporting its stablecoin, especially after the volatility seen by Ethereum last week.

40 individual lots placed

In the first phase of the auction, 40 individual lots worth 50,000 DAIs each were issued and bids were approved. This means that a total of $2 million would be erased of the $4 million debt resulting from last week’s Ethereum price turmoil.

Through this reverse auction, bidders purchase ever-decreasing quantities of MKR for their bids worth 50,000 DAI.

The initial bid for each lot reached 250 MKR, with a fixed reduction of 3% for each subsequent bid.

At the time the first lot was issued, the MKR price reached almost $245, which indicates that $50,000 worth of DAI was being tendered for $61,250 worth of Maker tokens. However, when bids for smaller volumes of MKR were placed, MKR price moved up.

The winning bids for the majority of lots were put for 188.6792 MKR, when the price reached $270.02, totaling $50,947.16.

However, a further 3% decline on the amount of MKR being bid would push the price down to $49,418.74; less than the Dai being bid.

At 6:00 a.m. EST, the MKR price reached $305, with new bids placed on seven lots, taking them down to 183.1837 MKR.

Earlier, Cryptolydian reported that MakerDAO developers have held a public meeting to consider the code on the collateral adaptor for USDC.

They discussed adding funding for the USDC, a stablecoin backed by US dollars, as a hedge against liquidity danger.

The potential USDC collateral support will make it easier to lock up USDC, mint DAI and sell DAI to USDC to regain DAI’s liquidity and drive its peg down to $1 USD.

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