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MakerDAO Is Looking To Invest $500 Million In US Treasury Bills

MakerDAO, the organization behind the stablecoin DAI, is voting on a proposal to invest 500 million DAI in US Treasury bills and possibly corporate bonds as well.

MakerDAO Is Looking To Invest $500 Million In US Treasury Bills 2

This vote took place after the community approved the asset allocation strategy into highly liquid bonds. MakerDAO says this strategy will introduce a new Vault mechanism with Real-world Asset. Maker vaults will allow users to deposit collateral and generate DAI stablecoins.

In community discussions, the decision is the result of the majority of stablecoins, worth up to $5.4 billion, in the Maker Treasury fund currently lying dormant and unprofitable for the organization. By creating new investment strategies, the organization hopes to reduce its credit risk.

Specifically, the community will choose between short-term US bills and IG (Investment Grade) corporate bonds for this new investment strategy.

Voting will now decide between a choice of allocating $500 million (as DAI) entirely to US bonds or 80-20 to short-term bills and IG corporate bonds, respectively.

At the time of writing, the 80-20 proposal is holding the majority of votes. The voting period for this proposal will last until the evening of June 30.

Private lender Monetalis will set up a fund to hold the bonds for Maker, but decisions about the funding will be entirely up to MakerDAO. This project also said that, if necessary, Maker Governance will conduct voting sessions to approve decisions to liquidate this investment.

At the moment, the MakerDAO community is also constantly reeling from power battles surrounding the proposal to establish a core unit to track the collaterals being used on the platform.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.