MakerDAO Expands Treasury Bond Holdings by $700 Million

MakerDAO, the company behind the DAI stablecoin, recently revealed that it has purchased $700 million in U.S. Treasury bonds. The return on investment for this method created by the Monetalis Group is estimated to be 4.5% per year. The overwhelming bulk of Maker’s present collateral is invested in short-term bond ETFs, making up 14.8% of DAI’s TVL.

In light of the present yield environment. MakerDAO has recommended increasing the debt ceiling for MIP65 from $500 million to $1.25 billion. The acceptance of a new RWA vault run by crypto asset management firm BlockTower onto the network is the first step. Towards a possible future UST purchase of up to $1.28 billion.

Moreover, the members voted that selling $390 million in Gemini Dollars (GUSD) and $500 million in Paxos Dollars (USDP) was in the organization’s best interest.

Pushing DeFi Boundaries

Allan Pedersen, CEO of Monetalis Group, made the observation that Maker’s decision to increase its purchase of US Treasury shares exemplifies the company’s “pushing boundaries within DeFi.” The stablecoin mostly relies on ETH and wstETH as collateral.

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According to a tweet by ASXN, a digital asset monitoring business, stETH collateral is quickly becoming more popular than ETH as the primary backing for DAI. A total of $933,000 is now being held as collateral in stETH. This illustrates that people are still attracted to liquid staking variations even after the Shapella upgrade.