MakerDAO voted to approve the proposal of "liquidating all USDC-A, USDP-A, and GUSD-A vault positions with a collateralization rate below 101%" and bear a bad debt loss of $1.5 million

MakerDAO tweeted that the community voted to approve the proposal to liquidate all USDC-A, USDP-A, and GUSD-A vault positions with a mortgage rate lower than 101%, and bear a bad debt loss of $1.5 million. Given that USDC, USDP, and GUSD have vaults with mortgage rates lower than 101%, and bad debts reached $1.3 million, on November 14, holders of MakerDAO’s governance token MKR voted on the liquidation parameters and the start of the auction, and decided on November 30 Initiate an executive vote, and falsely accrued interest will also be purged from the protocol at liquidation. The risk core department expects that the liquidation auction will be completed before the maximum discount of 1%, and the agreement will bear the loss of 1.5 million DAI as a whole. MakerDAO stated that the loss is only 2% of the current system surplus, and all other vaults are unaffected and have appropriate over-collateralization.