Allgemein

MakerDAO Allocates $1.25B to US Treasury Investments

• MakerDAO has voted in favor of allocating more funds to its current US Treasury investments, aiming to diversify DAI’s stablecoin liquid backing.
• The proposed increase in investments will raise the DAO’s real-world asset vault debt ceiling from $500 million to $1.25 billion.
• A preliminary vote has been concluded with a majority of votes being in favor of the proposal, with an executive vote amongst DAO delegates to follow.

MakerDAO Proposes Increase in US Treasury Investment

MakerDAO, a decentralized autonomous organization (DAO) that issues the DAI stablecoin, has voted in favor of allocating more funds to its current US Treasury investments. This increase aims to diversify DAI’s stablecoin liquid backing through exposure to real-world assets (RWAs).

Preliminary Vote Concluded

The first stage of MakerDAO’s expanded foray into investing in RWAs has concluded with the passing of the preliminary vote to increase the DAO’s real-world asset vault debt ceiling from $500 million to $1.25 billion DAI ($1.25 billion). The governance poll was active for three days and ended on Thursday, March 16th 2023, with a majority of votes being in favor of the proposal.

What is Debt Ceiling?

The debt ceiling in MakerDAO refers to the maximum amount of DAI that can be minted against collateral held within the vault. The current debt ceiling for this vault is $500 million and if this proposal passes it will be increased by $750 million as part of a future governance package.

Previous RWA Investment Strategy

MakerDAO began its RWA investment strategy last year when it allocated 10% or 50 million worth of its total supply towards government treasury bonds and other various RWAs such as corporate bonds, commodities and real estate investment trusts (REITs). In December 2020, MakerDAO further diversified its portfolio by investing up to 30% or 150 million worth into RWAs such as corporate bonds, commodities and REITs – consequently increasing their security even more so than before.

Conclusion

After multiple proposals for increasing capital allocations into RWAs were presented over recent months – including one presented at Devcon 6 calling for up to 5% or 25 million worth – this latest decision marks yet another milestone on Maker’s path towards scaling their operations while continuing their mission of providing users around world access financial freedom without borders or centralized control mechanisms.

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