MakerDAO is planning to invest $500 Million in United States Government Bonds

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Last Updated on October 7, 2022 by Bitfinsider

The world’s largest decentralized finance (DeFi) lending platform, MakerDAO, revealed on Thursday that it intends to invest a total of $500 million in investment-grade corporate bonds and short-term US treasury bonds.

The idea, which will see $400 million of the organization’s asset reserves allocated towards US treasury bonds and $100 million invested in company bonds, was adopted by MakerDAO members in a community-wide vote that lasted for months.

One transaction for one million dollars has already been carried out, and the remaining ones will soon follow suit.

“The 80-20 split between treasuries and bonds remained the preferred method during the voting process,” said Nadia Alvarez, the head of MakerDAO Growth, in a statement. “The vote was close, but the 80-20 split won out.” “This demonstrates the opportunities that will be available as a result of the migration, and it is really exciting to have such steadfast support from the community.”

The MakerDAO native stablecoin, known as DAI, will be exchanged for a total of $500 million worth of US dollars under the watchful eye of DeFi asset advisor Monetalis. The conversion of half of the funds will be handled by investment management company Baillie Gifford, and the other half will be handled by digital asset bank Sygnum. After that, such monies will be put toward the acquisition of corporate bonds and United States Treasury notes.

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