MakerDAO, a pioneer in DeFi plans to inject $500 million worth of its DAI for use in bonds and treasuries


MakerDAO, a pioneer in decentralized finance, will convert up to $500 million worth of its DAI stablecoin for use in bonds and treasuries.

On October 6, Maker Governance carried out the decision to diversify the protocol’s holdings. The money will be invested in investment-grade corporate bonds and short-term US Treasury bonds, which have historically been safe haven assets during turbulent economic times.

The allocation of DAI will, in MakerDAO’s words, “promote the usability of digital assets in the traditional space, extending DAI’s influence beyond crypto,” the company claims.

A first vote was held in June, and DeFi asset advisor Monetalis has now finished the first $1 million deployment.

The investment will be divided, with 20% invested in corporate bonds and 80% in short-term treasuries.

Treasury bills are short-term U.S. government securities with maturities ranging from a few days to a year that are sold at a discount to their face value.

Corporate bonds are debt instruments that companies issue and sell to investors.

The 80-20 split between treasuries and bonds remained the most popular strategy during the voting process, according to Nadia Alvarez, CEO of MakerGrowth.

This demonstrates the opportunity brought about by the relocation, and it is encouraging to see the community’s steadfast support.

A fiat off-ramp will be provided by asset management company Sygnum in conjunction with BlackRock Switzerland to convert 250 million DAI into USD, which will then be diversified into conventional assets.

The action is a part of MakerDAO’s Endgame Plan, whose first stage entails exposing more people to real-world assets in order to gather more ETH.


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