Fri, February 23

MakerDAO Adds U.S Treasury Bonds Worth $700 Million

MakerDAO Adds U.S Treasury Bonds Worth $700 Million Editors News
  • The projected annualized return for this approach developed by Monetalis Group is 4.5%.
  • Maker’s current collateral accounts for 14.8% of DAI’s TVL.

The MakerDAO team, creators of the DAI stablecoin, recently announced the successful completion of a $700 million USD Treasury bond purchase. The project said in a press statement that it now has a total bond allocation of $1.2 billion.

MakerDAO has already proposed raising the debt cap for MIP65 from $500 million to $1.25 billion. In order to take advantage of the current yield environment, and this move follows suit. A new RWA vault operated by crypto asset management BlockTower was just accepted into the network. Indicating the first step towards a potential future UST purchase of up to $1.28 billion.

Diversified Portfolio Approach

The members who cast ballots also decided it was in the best interest of the reserve to sell off $390 million worth of Gemini Dollars (GUSD) and $500 million worth of Paxos Dollars (USDP).

Moreover, the projected annualized return for this approach developed by Monetalis Group is 4.5 percent. Maker’s current collateral accounts for 14.8% of DAI’s TVL, the vast majority of which is held in short-term bond ETFs.

Maker’s choice to buy more US Treasury shares, as pointed out by Allan Pedersen, CEO of Monetalis Group, demonstrates that it is “pushing boundaries within DeFi” and developing a “diversified portfolio approach.” The stablecoin primarily uses ETH and wstETH as collateral.

ASXN, a firm specializing in digital asset analysis, tweeted that stETH collateral has started to overtake ETH as the preeminent backing for DAI. Recently, the total amount of stETH collateral reached 933,000. This demonstrates that, even after the Shapella improvement, users are still drawn to liquid staking variants.

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An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.