MakerDAO plans to invest $500 million into ‘minimal risk’ treasuries

29-Jun-2022 By: Sudeep Saxena

MakerDAO plans to invest $500 million into ‘minimal risk’

treasuries and bonds

A proposal to invest 500 million Dai (DAI) stablecoins into a combination of US treasuries and bonds is presently up for a vote by MakerDAO in order to assist it weather the bear market and utilizing unused reserves.

After a straw vote in a governance Signal Request, the decentralized autonomous organization (DAO) members must now choose whether the dormant DAI should be invested fully in short-term treasuries or divided 80/20 between treasuries and corporate bonds.

The Maker system is managed by MakerDAO, which in turn releases DAI stablecoins linked to the US dollar in return for user deposits of ETH, wBTC, and almost 30 other cryptocurrencies.

This plan is a significant development for MakerDAO since it shows the organization's desire to go outside the cryptocurrency space and use its flagship DAI to generate returns from more conventional, "safe" financial ventures.

By staking their Maker tokens, members in MakerDAO can vote on proposals. With only 12 votes, the option to divide Dai between treasuries and bonds has received support from 99.3 percent of MKR tokens thus far. With 169,196 MKR tokens invested, governance engagement at Maker is presently at its lowest level since 2022.

There is a very limited window of opportunity for additional voters to choose a side, abstain, or reject the alternatives before the poll closes on June 30.

After a conclusion is made, MakerDAO will have access to the desired financial instruments through European wholesale lender Monetalis. Allan Pedersen, the CEO of Monetalis, posted a Signal Request on the forum with possibilities his company may offer the DAO.

Although Maker made a historic move, MKR is currently trading at $952.81, according to CoinGabbar, and is down 2.8 percent over the last 24 hours.

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