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

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

CoindeskCoindesk2023/06/21 15:39
By:Krisztian Sandor

The purchase is the latest step to increase the role of real-world assets in the platform’s DAI stablecoin reserve.

Stablecoin issuer and protocol bought another $700 million U.S. Treasurys, taking the total in its stablecoin reserve to $1.2 billion, the platform said in a press release.

The purchase was the latest step in Maker’s strategy, encapsulated by founder Rune Christensen’s “,” to diversify the assets backing the $4.5 billion dollar-pegged stablecoin by increasing the role of traditional financial assets such as government bonds in the reserve.

The acquisition was part of a approved in March to increase the upper limit of a real-world asset (RWA) vault that invests in short-term government bonds to $1.25 billion. The vault, one of the facilities that ensures DAI keeps its $1 price peg, is managed by asset manager Monetalis.

The platform is undergoing a restructuring that includes breaking up its structure into smaller, autonomous units called SubDAOs and investing in yield-generating, real-world assets to boost protocol revenue at a time when demand for crypto lending is modest.

“Through the diversification of its collateral pool with this U.S. Treasury ladder strategy, Maker is taking advantage of the current yield environment and putting its assets to work,” Monetalis CEO Allan Pedersen said in a statement.

The community recently the onboarding of a new RWA vault managed by crypto asset manager BlockTower, marking the towards an additional UST purchase of up to $1.28 billion in the future. Voting members also ditching $500 million of Paxos Dollar () and $390 million of Gemini Dollar () from the reserve to pursue better yielding investments.

Edited by Sheldon Reback.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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