MakerDAO looks to invest $500M into ‘minimal risk’ treasuries and bonds
![](data:image/svg+xml;utf-8,<svg xmlns="http://www.w3.org/2000/svg" width="1080" height="719" />)
The DAO intends to generate yield with its native DAI stablecoin via traditional investments in U.S. treasuries and possibly even corporate bonds.
MakerDAO is currently voting on a proposal aimed at helping it weather the bear market and utilize untapped reserves by investing 500 million Dai (DAI) stablecoins into a combination of United States treasuries and bonds.
Following a straw poll in a governance Signal Request, the decentralized autonomous organization (DAO) members now must decide whether the dormant DAI should go entirely into short-term treasuries or split 80% into treasuries and 20% into corporate bonds.
The Maker Governance votes to determine how to allocate 500 million DAI between different investment strategies.
This allocation poll is a result of the passage of MIP65: Monetalis Clydesdale: Liquid Bond Strategy & Execution.
A recap on how it would work.
MakerDAO is the governing body of the Maker protocol, which issues U.S. dollar-pegged DAI stablecoins in exchange for user deposits of Ether (ETH), Wrapped Bitcoin (wBTC) and nearly 30 other cryptocurrencies.
This proposal represents a major step for Maker DAO, as it signals its intent to extend beyond the crypto realm and earn yield from traditional “safe” financialinvestments with its flagship DAI.
One of the largest delegates in MakerDAO, Doo, voted for the 80/20 split allocation. He reasoned that the allocation would be beneficial for the protocol in the long term for several reasons including its new exposure to major traditional financial institutions and learning to manage finances in a bear market.
"As TradFi is seeing interest rate increase due to the FED," Doo told Cointelegraph on June 29, "Maker protocol working with TradFi to take advantage of the high interest would be able to strengthen its revenue model."
MakerDAO allows participants vote on proposals by staking their Maker (MKR). So far, the option to split the Dai between treasuries and bonds has 99.3% MKR token support, albeit from just 12 voters. Governance participation at Maker is currently at its lowest level in 2022, with 169,196 MKR tokens staked.
2 comments