MakerDAO DeFi Platform Taps TradFi, Invests $500M in Bonds, Treasuries

MakerDAO, a pioneer in decentralized finance (DeFi), would convert up to $500 million worth of its DAI stablecoin for usage in bonds and treasuries. After a vote to diversify the protocol’s portfolio, Maker Governance carried out the change on October 6. The money would be invested in investment-grade corporate bonds and short-term U.S. government bonds, which have historically been haven assets during turbulent economic periods. Maker Governance executed the first DAO balance sheet investment in high-quality bonds. MIP65: Monetalis Clydesdale will activate a Maker Vault for the purpose of investing PSM’s USDC in liquid bond strategies with a debt ceiling of 500 million DAI. pic.twitter.com/LlpBUkYXxE — Maker (@MakerDAO) October 6, 2022 DAI Allocation To Promote Usability Of Digital Assets The allotment of DAI would “increase the usage of digital assets in the traditional space, extending DAI’s reach beyond crypto,” the company claims. A first vote was held in June. DeFi asset advisor Monetalis has now finished the first $1 million deployment. 20% of the investment would go to corporate bonds, with the remaining 80% going to short-term treasuries. Treasury bills are short-term U.S. government securities with maturities ranging from a few days to a year discounted at their face value. Corporate bonds are debt instruments that companies issue and sell to investors. MakerDAO Invests In Bonds And Treasuries The 80-20 split between...