The MakerDAO DeFi platform community has begun voting on investing unallocated 500 million DAI in “low-risk bonds”.
The Maker Governance votes to determine how to allocate 500 million DAI between different investment strategies.
This allocation poll is a result of the passage of MIP65: Monetalis Clydesdale: Liquid Bond Strategy & Execution.
A recap on how it would work.
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— Maker (@MakerDAO) June 27, 2022
The initiative aimed at mitigating the bear market effects. At the time of writing, MakerDAO’s balance sheet held $4 billion in DAI. Additionally, for these purposes, up to $500 million could be drawn from the DAI/USDC pool.
Among the strategies under consideration are a 100% allocation to U.S. Treasuries, or an 80:20 split between government and investment-grade corporate bonds.
The proposed options are characterised by low volatility, with capital risk significantly below 4%.
The investments […] do not pose significant risk to either the DAI peg or MakerDAO’s solvency, according to the proposal.
As of writing, 79.6% of votes were for the second option, 7% for the first, and 13.5% of MKR holders opposed deploying treasury funds.
Voting closes on June 30 at 16:00 (UTC).
If approved, the protocol would move beyond the crypto market and begin earning income from traditional financial investments through the stablecoin it issues.
The invested funds will be held in a trust established by Monetalis, a private German group specialising in financial planning.
In June, MakerDAO paused Aave-related lending operations.
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