cryptoknowmics.com
MakerDAO, a pioneer in decentralized finance (DeFi), would convert up to $500 million worth of its DAI stablecoin for usage in bonds and treasuries. After a vote to diversify the protocol's portfolio, Maker Governance carried out the change on October 6. The money would be invested in investment-grade corporate bonds and short-term U.S. government bonds, which have historically been haven assets during turbulent economic periods. https://twitter.com/MakerDAO/status/1578007896868233216
DAI Allocation To Promote Usability Of Digital Assets
The allotment of DAI would "increase the usage of digital assets in the traditional space, extending DAI's reach beyond crypto," the company claims. A first vote was held in June. DeFi asset advisor Monetalis has now finished the first $1 million deployment. 20% of the investment would go to corporate bonds, with the remaining 80% going to short-term treasuries. Treasury bills are short-term U.S. government securities with maturities ranging from a few days to a year discounted at their face value. Corporate bonds are debt instruments that companies issue and sell to investors.
MakerDAO Invests In Bonds And Treasuries
The 80-20 split between treasuries and bonds remained the most popular strategy during the voting process, according to Nadia Alvarez, CEO of MakerGrowth. It demonstrated the possibility brought about by the relocation, highlighting the community's steadfast support. Asset management company Sygnum would provide a fiat off-ramp with BlackRock Switzerland to convert 250 million DAI into USD, which would then be diversified into conventional assets. The action is a part of MakerDAO's Endgame Plan, whose initial stage is exposing more people to real-world assets to amass more ETH. With DAI as a free-floating asset not pegged to USD, MakerDAO's long-term objective is to strengthen the protocol's resilience and decentralization.