MakerDAO Boosts U.S. Treasury Holdings by $700M to Back DAI Stablecoin With Real-World Assets

Stablecoin issuer and decentralized finance protocol MakerDAO bought different $700 cardinal U.S. Treasurys, taking the full successful its DAI stablecoin reserve to $1.2 billion, the level said successful a property release.

The acquisition was the latest measurement successful Maker’s strategy, encapsulated by laminitis Rune Christensen’s “Endgame Plan,” to diversify the assets backing the $4.5 cardinal dollar-pegged stablecoin by expanding the relation of accepted fiscal assets specified arsenic authorities bonds successful the reserve.

The acquisition was portion of a proposal approved successful March to summation the precocious bounds of a real-world plus (RWA) vault that invests successful short-term authorities bonds to $1.25 billion. The vault, 1 of the facilities that ensures DAI keeps its $1 terms peg, is managed by plus manager Monetalis.

The level is undergoing a restructuring that includes breaking up its operation into smaller, autonomous units called SubDAOs and investing successful yield-generating, real-world assets to boost protocol gross astatine a clip erstwhile request for crypto lending is modest.

“Through the diversification of its collateral excavation with this U.S. Treasury ladder strategy, Maker is taking vantage of the existent output situation and putting its assets to work,” Monetalis CEO Allan Pedersen said successful a statement.

The assemblage precocious approved the onboarding of a caller RWA vault managed by crypto plus manager BlockTower, marking the first step towards an further UST acquisition of up to $1.28 cardinal successful the future. Voting members besides favored ditching $500 cardinal of Paxos Dollar (USDP) and $390 cardinal of Gemini Dollar (GUSD) from the reserve to prosecute amended yielding investments.