MakerDAO completes acquisition of $700M worth of U.S. treasury bonds

June 22, 2023 01:32 PM AEST | By Invezz

MakerDAO completes acquisition of $700M worth of U.S. treasury bonds — Image source: Invezz

DAI’s TVL grows past $8.4B

Monetails Group designed this strategy and expected it to deliver 4.5% in annualized yield. DAI’s current total value locked stands at $8.4 billion. Moreover, near-term bond exchange-traded funds include a massive portion of Marker’s present collateral of 14.8%.

Monetalis Group CEO Allan Pedersen stated that Maker’s move to buy more U.S. Treasury shares reveals its dedication to boosting DeFi and introducing a varied portfolio strategy. The protocol’s enhanced stablecoin and platform will generate new revenue options to attract more players to the decentralized finance space.

The stablecoin uses stETH and Ethereum as its primary collateral assets. ASXN, a research firm, tweeted that stETH collateral started to outshine Ether as DAI’s dominant backer. stETH’s total collateral touched 933,000 recently. That indicates that liquid staking derivatives remain popular following the Ethereum Shapella upgrade.

Dodging bets

As mentioned, the latest purchase matches the team’s strategy to expand its holdings, as shown in its March 2023 proposal. That came as MakerDAO eyed more resilience after an incident that saw DAI plunging to $0.89 on 11 March, briefly losing USD parity. The notable stablecoin dip emerged after Silicon Valley’s failure.

Silicon Valley’s debacle impacted several stablecoins, including USDC, which DAI uses to ensure its peg. Consequently, MakerDAO planned to invest some of its USDC in peg (diversifying from Circle’s stablecoin) to acquire the planned $750M in Treasury bond.

The post MakerDAO completes acquisition of $700M worth of U.S. treasury bonds appeared first on Invezz.

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