The DAO from Makerprotocol DeFi continues the diversification of its assets from reserve. MakerDAO invested 700 million dollars in additional bonds from US Treasurybringing the total to 1.2 billion.
The diversification strategy initiated by MakerDAO last year continues. It was almost a surprise at first, but the DeFi protocol decided in October 2022 to invest in traditional assets.
Why? Because this allows it to diversify its reserves and reduce its exposure to crypto-assetswhich are inherently more volatile. After an initial purchase of $500 million in Treasury bonds, MakerDAO please re-sign.
Diversification of its warranty pool
The stablecoin issuing organization DAI has made a new investment. This time it is acquiring 700 million dollars from U.S. Treasury bills. In all, his capital in these assets climbed to $1.2 billion.
The transaction was carried out on MakerDAO’s behalf by digital asset manager Monetalis.
By diversifying its collateral pool through this US Treasury laddering strategy, Maker is taking advantage of the current yield environment and putting its assets to work,” emphasizes its CEO, Allan Pedersen.
In investing, a laddering strategy involves allocating portions of one’s total capital at different dates. In this way, each portion of the portfolio matures at regular intervals. This is the approach taken by MakerDAO with bonds.
More income for the Maker protocol
Given the success of the initial roll-out and the current robustness of the bond market, this increase in Maker’s exposure to real assets is a solid, reliable and flexible solution that will generate further revenue for the protocol,” says Allan Pedersen.
MakerDAO’s financial diversification is not, however, the only new development in its ecosystem over the past 12 months. The Endgame project is currently undergoing a major transformation.
Its roadmap was unveiled last month, with a technical project scheduled to be carried out in 5 phases, with the ambition of making DAI the most widely used stablecoin within 3 years. This will involve the creation of sub-DAOs, 6 to start with, and new DeFi products.
The disgraced DAI wants to reinvent itself
A first crypto service was launched in May. It is Spark, a decentralized lending product for its stablecoin. Thanks to this fork of Aave V3, DAI – whose yield has risen to 3.49% – now has a tailor-made solution.
To achieve its goals, the Maker ecosystem will have its work cut out for it, especially if it is to return to success in the highly competitive stablecoin market. According to Kaiko, DAI suffers from an overdependence on the USDC.
The historic stablecoin of DEX and the DeFi would even be “ fallen from grace”. The result is a severe sanction:
Its share of DEX volume has suffered, dropping from market leader with 28% of volumes in 2021 to just 2% today.”
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