MakerDAO Passes First Vote on Proposal to Increase US Treasury Investments to $1.25 Billion

Read full article at CryptoPotato.

MakerDAO, a decentralized autonomous organization that issues the DAI stablecoin, has voted in favor of allocating more funds to its current US Treasury investments.

The increase in investments in government treasury bonds aims to diversify DAI’s stablecoin liquid backing through exposure to real-world assets (RWAs).

MakerDAO Votes to Increase Debt Ceiling by $750 Million

The first stage of MakerDAO’s expanded foray into investing in RWAs has concluded with the passing of the preliminary vote to increase the DAO’s real-world asset vault debt ceiling to 1.25 billion DAI ($1.25 billion).

The governance poll, which started on March 13, was active for three days and ended on Thursday, March 16, 2023. Based on the results, the majority of the votes were in favor of the proposal to raise the debt ceiling by $750 million. The debt ceiling in MakerDAO refers to the maximum DAI that can be minted against the collateral in the vault. The current for this vault is $500 million.

This concluded poll is only a preliminary vote. The matter will be put to an executive vote among DAO delegates. If it passes, it will be executed as part of a future governance package.

MakerDAO began its RWA investment strategy last year with a $500 million allocation to U.S. Treasurys. This marked a departure from the protocol’s crypto-native lending strategy since inception. A financial statement from earlier in the year revealed that RWA-based investments contributed 70% of Maker’s gross revenue in December 2022.

Crypto Lending on the Brink?

MakerDAO’s pivot to RWAs comes as the crypto-native lending space took a battering in 2022. This came amid a year-long bear market that saw many participants defaulting on huge loan positions and going into bankruptcy. This sector of the market also seemed to have been hardest hit by the Terra and FTX collapses that exacerbated the bear decline

CeFi lenders such as Voyager and Celsius have gone bankrupt. Meanwhile, they are not alone in this turmoil, as several Solana-based crypto lenders have also sunset their frontend platforms, leading to fears that the Solana DeFi ecosystem might be heading to zero.

Despite this, DeFi lenders are still looking to make progress. Both Aave and Compound have released multichain upgrades of their lending protocols. These platforms are expected to play a significant role in the liquid staking derivatives market that could emerge following the activation of staked ether withdrawals after Ethereum completes its Shanghai upgrade.

The post MakerDAO Passes First Vote on Proposal to Increase US Treasury Investments to $1.25 Billion appeared first on CryptoPotato.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Related articles

PraSaga awarded U.S. patent for placing computer operating system onto the blockchain

Read full article at News. According to a new United States Patent and Trademark Office publication on Tuesday, Swiss-based blockchain startup PraSaga has been awarded a patent placing its operating system, dubbed “SagaOS,” on the blockchain. Titled “Systemic Extensible Blockchain Object Model Comprising A First-class Object Model And A Distributed Ledger Technology,” the methods […]

Learn More

Dog-Themed DeFi Project Mysteriously Loses Fundraised $60 Million

Read full article at newsbtc.A DeFi project that launched on Thursday had raised $60 million overnight during its token sale. However, the funds seem to have disappeared, and no one is sure exactly how. On Friday, investors woke up to the shocking news that their funds had disappeared. Around 13,556.36 ETH, which was worth $60 […]

Learn More


Read full article at Oscar Ramos. THE WHITE HOUSE IS A JOKE!! CRYPTO FUD DISASTER ✅ Join the Discord Server and Patreon Fam: Know all my Crypto trades, Portfolio, and Inner circle! ✅ Join Haru & GET 15% BTC & ETH APY: ✅ Join & Get FREE CRO!! ✅ Join Webull […]

Learn More