MakerDAO is currently voting on a proposal designed to help you ride out the bear market and use wasted reserves, investing 500 million stablecoin Dai (DAI) in a mix of traditional bonds and US Treasury shorts.
Following an opinion poll in a Signal Request, members of the decentralized autonomous organization (DAO) must decide now whether the idle DAI should go entirely into short-term US treasuries or split 80% into such “treasuries” and 20% into corporate 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.
— Maker (@MakerDAO) June 27, 2022
The Maker Government votes to determine how to allocate 500 million DAI among different investment strategies.
This allocation survey is the result of the approval of MIP65: Monetalis Clydesdale: Liquid Bond Strategy & Execution.
An account of how it would work.
MakerDAO is the governing body of the Maker protocolwhich issues DAI stablecoins pegged to the US dollar in exchange for user deposits of Ether (ETH), Wrapped Bitcoin (wBTC), and about 30 other cryptocurrencies.
This proposal represents an important step for Maker DAO, as it signals its intention to extend beyond the realm of cryptocurrencies and earn returns on “safe” traditional financial investments with its flagship coin DAI..
MakerDAO allows participants to vote on proposals by staking their Maker (MKR). So far, the option to split Dai reserves between traditional and US treasury bonds (or treasuries) is supported by 99.3% of MKR tokens, albeit only 12 voters. Governance stake in Maker is currently at its lowest level in 2022, with 169,196 MKR tokens being staked.
The poll ends June 30 at 12:00 p.m. EST, leaving little time for other voters to choose a side, abstain, or decline options..
Once an option is chosen, European wholesale lender Monetalis will provide MakerDAO with access to the financial instruments you want. Monetalis CEO Allan Pedersen issued the Signal Request on the forum with the options that signing him could provide the DAO.
The firm has as one of its objectives the transition towards resource efficiency with low carbon emissions, according to the UN definition.
The DAO’s decision to invest such a large amount of funds is based on the recommendations of several members who believe that deploying unused funds could help boost the profitability of the protocol with minimal risk.
MakerDAO Strategic Finance Core Unit member Sebastien Derivaux stated in a June 20 assessment of the feasibility of the allocation that, although the amount in question seems relatively high, it should be a safe option for the DAO:
“A DAI 500 million investment in this context, which is expected to remain liquid and low volatility, is therefore not a significant risk to DAI parity or MakerDAO’s solvency.”
Derivaux suggested that the two options currently up for vote were the best of the five that were up for debate.
Despite Maker’s historic move, MKR is down 1.6% in the last 24 hours and is trading at $964.71according to CoinGecko.
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