Padawan DAO loses half its treasury through risky money management
Padawan DAO is a project that aims to provide funding to students under 25 to attend blockchain-related events. In early January, the DAO decided to essentially gamble with project funds on the price of Ethereum staying high: they placed the treasury's $150,000 into a collateralized debt position (CDP) for a decentralized stablecoin called DAI. As the crypto market entered a dip, the project's position went underwater and the protocol had to sell 53 ETH ($117,000) to keep the DAI fully backed. The project had been counting on Ethereum not taking a tumble below $2,200, as it did on January 27, which would have allowed them to keep their 53 ETH and cash out their DAI. Since this didn't happen, the project found itself with their budget halved.