MakerDAO Approves Vault To Invest Up To $1.28 Billion In US Treasuries

Key Points:

• MakerDAO backs a proposal to buy US Treasuries worth $1.28 billion.
• Maker is set to exchange 1.28 billion DAI stablecoins for short-term US Treasuries with maturities ranging from 0-6 months.
• The proposal comes after Maker approved a proposal to increase holdings of the US Treasury bond portfolio by 150%, from $500 million to $1.25 billion.

A MakerDAO vote ending Thursday approved the proposal to invest up to $1.28 billion in US Treasuries.

Following the proposal submitted on the MakerDAO governance forum earlier this month, the Andromeda Project was launched by Blocktower Capital Advisors LP under MIP90. According to the asset purchase schedule posted on the admin forum, 1/6 (16.67%) of the total DAI stock will be allocated to the US Treasury in 0-1 month. Equal allocations have been listed for 1-2 month bonds, 2-3 month bonds, etc.

MakerDAO Governance will instruct trading parties to mint Dai, exchange Dai for other stablecoins held in PSM, and buy US Treasury bonds evenly over maturities ranging from 0 to 6 months.

Voters unanimously supported opening a new real-world asset vault (RWA) called BlockTower Andromeda. MakerDAO will pay a 0.15% sorting fee to BlockTower, which amounts to over $1.9 million. Celadon Financial Group will act as the broker, and Wedbush Securities will custody the assets.

The voting page shows that the community approved the proposal with an overwhelming majority, with 99.99% of the votes in favor of Project Andromeda.

The approval to buy $1.28 billion worth of US Treasury bonds comes just months after the Maker community approved a proposal to increase its US Treasury bond portfolio holdings to 150%, from $500 million to $1.25 billion. The latest approval comes just a day after Circle, a fellow stablecoin issuer, removed all US Treasury bonds from the reserve that backs their USDC stablecoin.

Reportedly, the DeFi Protocol also purchased $1.1 billion in government and corporate bonds earlier this year through a vault led by asset manager Monetalis Clysdale.

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

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