MakerDAO increases holdings in US sovereign debt to $1.2 billion

The DeFi platform MakerDAO increased the amount of U.S. Treasury bonds in its reserves from $500 million to $1.2 billion.

The first step ($500 million) in this direction was undertaken by MakerDAO in October 2022.

To implement the project, it partnered with Monetalis, a DeFi-focused consulting firm. The $500 million was split evenly between asset-management firms Sygnum Bank and Baillie Gifford.

The participants MakerDAO explained the initiative as an effort to strengthen the balance sheet by using liquid and low-risk traditional assets.

A proposal for the next step was put up for consideration in March.

“MakerDAO […] has accumulated a large amount of funds in its peg-stability module, which provides DAI stability. By diversifying the collateral pool the platform leverages the current yield of US Treasuries. … The move will bring the project more income,” said Allan Pedersen, CEO of Monetalis Group.

In May, Block Analitica proposed to the MakerDAO community to increase the yield on the DAI stablecoins to 3.33% per year.

On June 20, the parameter was raised to 3.49%.

Recently the DSR went from 1% to 3.49%, enabling a higher yield natively streamed to all DAI holders that opt in.

sDAI implements a tokenized EIP-4626 compliant wrapper for DAI deposited into the DSR, converting the DSR-deposited position into a token you can hold and use.

— Maker (@MakerDAO) June 20, 2023

Earlier, the project presented a five-stage roadmap named Endgame, built on AI tools.

In May, the developers of MakerDAO launched Spark Protocol — a liquidity market built on the DAI stablecoin and the assets backing the DeFi platform.