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MakerDAO goes ahead with $500M investment in treasuries and bonds

by Repost Admin October 7, 2022, 2:12 am 1.4k Views

$500 million of the funds currently collateralizing the Dai (DAI) stablecoin will be reallocated to U.S. Treasuries and corporate bonds in an effort to provide the protocol low risk additional yield.

MakerDAO, the governing body of the Maker Protocol, has taken the first step of its plan to reallocate $500 million of its stablecoin Dai (DAI) collateral reserves into short-term United States Treasuries and corporate bonds.

The decentralized autonomous organization (DAO) voted on Oct. 6 to approve a pilot transaction of $1 million following an executive vote from Maker (MKR) token holders, with the rest of the funds soon to be reallocated following confirmation from the community.

A majority, 80% of the $500 million, will be invested in short-term U.S. Treasuries, with $160 million allocated t