MakerDAO, the governing body for the Maker protocol, has taken the first step in its plan to redistribute the $500 million Dai stablecoin (
) Offer short-term US Treasuries and corporate bonds.
The Decentralized Autonomous Organization (DAO) voted to approve a $1 million pilot deal on Oct.
) token holders, and the remaining funds will be redistributed shortly after confirmation from the community.
The majority, 80% of the $500 million, will be invested in short-term US Treasuries, with $160 million invested in iShares US Treasuries ETFs with maturities of 0-1 years and $240 million in US Treasury exchange-traded funds from 1 -3 years. Involved. BlackRock ETF.
The final $100 million will be in investment grade corporate bonds from investment management firm Baillie Gifford.
Asset allocation was determined by MKR holders, with 68,250 MKRs representing 57.67% of the total vote opting for an 80-20 split.
MakerDAO implemented this plan as a way to diversify the holdings that currently provide security for DAI, allowing DAO to distribute unused funds and provide additional revenue for the protocol without significant risk to the DAI token or the solvency of MakerDAO.
DAI is a stablecoin that MakerDAO uses to allow the Decentralized Finance (DeFi) protocol to lend funds to users so that returns are not subject to the fluctuations we often see in the cryptocurrency markets.
The majority of DAI’s $9 billion collateral pool currently consists of US dollar coins (
), a stable currency backed by cash and short-term US Treasuries. Additionally, DAI is currently over-indebted at 134.87%.
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Although fixed income investments have low returns, they are traditionally seen as a “safe haven” for ordinary investors during bear markets due to the influx of fixed income, and also because fixed income investors are compensated before owners of capital in the event of bankruptcy.
The October 6 announcement pushed DAI in a different direction from comments by MakerDAO co-founder Ron Christensen on August 27, who recommended depegging DAI from the US dollar and moving to a truly decentralized cryptocurrency due to regulatory concerns.