Maker Steps To TradFi With $500 Million Chest – Details Inside

MakerDAOThe governing body of Protocol Maker, recently revealed that the community as a whole vote That has been going on for months is over.

The goal of the vote was to determine how best to allocate Maker treasury funds for the best investment. The result was $500 million in corporate bonds and short-term US Treasuries.

On October 6, CEO vote From Maker token holders, the Decentralized Independent Organization (DAO) has approved a $1 million beta deal, with the remaining funds redistributed based on community approval.

BlackRock’s iShares ETF (IB01) will receive $160 million of the $500 million and the iShares ETF (IB03) will receive $240 million.

Baillie Gifford, an investment management firm, will buy investment grade corporate bonds with the remaining $100 million.

The proposal was pushed by MakerDAO as a way to diversify the holdings currently used as collateral for DAI, while allowing DAO to distribute unused funds and provide more income to the protocol without unduly jeopardizing the DAI peg or solvency risk for MakerDAO.

On October 6, the trading chart revealed a spike in MKR prices, which is a positive development. The price of the asset started at $841 and ended at $844. In the same trading session, it touched the high of $862 and ended up 0.12% at the end of trading.

The upward trajectory of the MKR movement can be visualized using trend lines. Moreover, it was evident that the resistance line was at $881 while the support line was around $712.

However, it seems that the resistance can be tested soon. If it is broken, a new high may be possible.

Source: TradingView

Using the DMI indicator, we can see that both the DI plus line and the signal lines were above the critical 20 level. Thus it indicates an uptrend in MKR.

In addition, the remarkable oscillator, at the time of publication, has settled above the zero line. Even the RSI (Relative Strength Index) line was well above its neutral level. It was approaching overbought territory at the time of writing.

All these indicators pointed to the strong bullishness that MKR has achieved, all on the daily time frame.

It should not be forgotten that Maker’s expansion into traditional finance helps spread the company’s risk and diversify its revenue away from the unpredictable crypto sector.

DAIThe fourth largest stablecoin by market capitalization, with a market capitalization of over $6 billion, will also benefit from diversification.

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