{"id":564749,"date":"2023-03-17T00:45:00","date_gmt":"2023-03-16T21:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/makerdao-passes-proposal-for-750m-increase-in-us-treasury-investments\/"},"modified":"2023-03-17T00:45:00","modified_gmt":"2023-03-16T21:45:00","slug":"makerdao-passes-proposal-for-750m-increase-in-us-treasury-investments","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/makerdao-passes-proposal-for-750m-increase-in-us-treasury-investments\/","title":{"rendered":"# MakerDAO passes proposal for $750M increase in US Treasury investments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dcd47f051a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dcd47f051a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/makerdao-passes-proposal-for-750m-increase-in-us-treasury-investments\/#%E2%80%9D_MakerDAO_passes_proposal_for_750M_increase_in_US_Treasury_investments_%E2%80%9C\" >&#8221; MakerDAO passes proposal for $750M increase in US Treasury investments &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_MakerDAO_passes_proposal_for_750M_increase_in_US_Treasury_investments_%E2%80%9C\"><\/span>&#8221; MakerDAO passes proposal for $750M increase in US Treasury investments &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>Lending protocol and stablecoin issuer MakerDAO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/vote.makerdao.com\/polling\/QmNTSr9j\">passed<\/a> a proposal on March 16 to increase its portfolio holdings of United States Treasury bonds by 150%, from $500 million to $1.25 billion.<\/p>\n<p>The proposal aims to increase the protocol\u2019s exposure to real-world assets and \u201chigh-quality bonds,\u201d following its Dai (DAI) stablecoin losing its $1 peg during market volatility on March 11. The $750 million debt ceiling hike was <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved by 77% of Maker\u2019s delegates. A representative of MakerDAO told Cointelegraph: <\/p>\n<blockquote><p>\u201cUnder this new deployment, MakerDAO would use $750 million of USDC in the PSM to purchase more US Treasury bonds, thus diversifying its liquid assets that back DAI.\u201d<\/p><\/blockquote>\n<p>The bonds will be purchased with equal maturities, biweekly and over a six-month period, totaling 12 slots of $62.5 million each. Under the strategy, MakerDAO said it expects to deliver a net annualized yield of 4.6% to 4.5% after custody. Maker\u2019s revenue stream could also be boosted by trading costs, the proposal noted.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/30cdc541-98c4-4b89-8c60-2389c7caf7d9.png\"><figcaption style=\"text-align: center;\">Maker&#8217;s new strategy ladder for the next six months. Source: MakerDAO<\/figcaption><\/figure>\n<p>The proposal would allow Maker \u201cto take advantage of the current yield environment, and generate further revenue on Maker\u2019s PSM Assets, in a flexible, liquid, manner,\u201d it read. Federal Reserve data <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/fred.stlouisfed.org\/series\/DGS10#\">shows<\/a> that Treasury\u2019s yields for 10-year constant maturity were at 3.64% on March 14.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/89d38b9e-8788-4aff-8b77-ec7446324ee3.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Market yield on U.S. Treasury securities at 10-year constant maturity: Source FRED<\/em><\/figcaption><\/figure>\n<p>The move is an extension of a current $500 million U.S. Treasury allocation managed by decentralized finance (DeFi) asset adviser Monetalis Clydesdale since October 2022. \u201cAs of January 2023, this investment strategy has brought ~$2.1 million in lifetime fees,\u201d MakerDAO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO\/status\/1633122315327139849\">claimed<\/a>.\u00a0<\/p>\n<p>Participants in the governance forum, however, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/forum.makerdao.com\/t\/proposal-to-increase-debt-ceiling-for-mip65-by-750m-to-1250m\/20060\/12\">said<\/a> that \u201cMaker has not yet received any payment from the first half billion DAI\u201d from Monetalis. Delegates also complained that questions in Maker\u2019s Discord and governance forum were not answered promptly, thus not offering enough time to analyze the proposal.\u00a0<\/p>\n<p>On March 11, the collapse of Silicon Valley Bank spread panic across markets and\u00a0led to the depeg of several stablecoins, including USD Coin (USDC) and Dai. In a March 13 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> thread\u00a0about the volatility, MakerDAO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MakerDAO\/status\/1635329593384083477\">noted<\/a> that its community was working on proposals to switch its stablecoin exposure to money market investments, such as U.S. Treasurys, \u201cwith the purpose of diversifying DAI\u2019s liquid collateral.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"defi_newsletter\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/makerdao-passes-proposal-for-750m-increase-in-us-treasury-investments\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; MakerDAO passes proposal for $750M increase in US Treasury investments &#8220; Lending protocol and stablecoin issuer MakerDAO passed a proposal on March 16 to increase its portfolio holdings of United States Treasury bonds by 150%, from $500 million to $1.25 billion. The proposal aims to increase the protocol\u2019s exposure to real-world assets and \u201chigh-quality&#8230;<\/p>\n","protected":false},"author":1,"featured_media":564750,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/bb58c33f-aa85-4a9c-aa4c-e73623760743.jpeg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[114542,76701,74868,77655,76700,75493,74336,117,67874],"class_list":["post-564749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bond-investments","tag-dai","tag-defi","tag-maker","tag-makerdao","tag-stablecoin","tag-bonds","tag-business","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/564749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=564749"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/564749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/564750"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=564749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=564749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=564749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}