MakerDAO Transfers $500 Million into US Treasuries and Bonds

Decentralized stablecoin protocol MakerDAO has committed to transferring $500 million of its DAI reserves into US Treasuries and bonds.

This marks the Decentralized Autonomous Organization (DAO) as the first investment in high-quality sovereign debt.

  • As explained by MakerDAO via Twitter, owners of MKR Been voted To deploy its USDC peg stabilization module on liquid bonds, using the newly created Real Assets Maker Vault.
  • The allocation will consist of 20% investment grade corporate bonds and 80% US Treasury bonds.
  • Only 1 million DAI guarantees have been posted so far, and the remainder requires further management votes to reach the newly created 500 million DAI debt limit.
  • The move comes amid a broader effort among stablecoin issuers to prove that their assets are backed by reliable reserves.
  • Tether – the world’s largest stablecoin issuer – has repeatedly reduced its exposure to commercial paper this year. latest Modernization It indicated that its commercial papers fell to only $50 million, while US Treasuries constitute 58.1% of the $68 billion portfolio.
  • Similarly, Circle and Paxos – the directors of USDC and BUSD, respectively – open Last July, its reserves were only backed by either cash or US Treasuries.
  • Historically, MakerDAO has operated differently. In an effort to maintain decentralization, its reserves were backed by a basket of different cryptocurrencies. These have included other stablecoins like USDC, as well as volatile cryptocurrencies like Bitcoin and Ethereum.
  • However, the DAO was looking to become less dependent on USDC after the circuit revealed its censorship hand in August – a USDC freeze locked in the TornadoCash privacy protocol.
  • Then he was the founder of MakerDAO Suggestion Transferring DAO’s USDC reserves entirely to Ethereum.

The MakerDAO post to move $500 million into US Treasuries and Bonds first appeared on CryptoPotato.

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