MakerDAO is currently voting on a proposal aimed at helping it seasoned with the bear market and utilize unused reserves by investing 500 million Dai stablecoins into a combination of US treasuries and bonds. The DAO intends to generate yield with its native DAI stablecoin via traditional investments in US treasuries and possibly even corporate bonds.
According to the straw poll in a governance ‘Signal Request,’ the DAO members now have to decide whether the dormant DAI should go completely into short-term treasuries or split 80% into treasuries and 20% into corporate bonds.
MakerDAO is the governing body of the Maker protocol, which issues U.S. dollar-pegged Dai stablecoins in exchange for user deposits of Ether (ETH), Wrapped Bitcoin (WBTC), and nearly 30 other cryptocurrencies.
This suggestion is an important step for Maker DAO as it signals its intent to range beyond the crypto dominion and earn yield from traditional “safe” financial investment with its flagship DAI.
MakerDAO lets participants vote on suggestions by staking their MKR. The option to split Dai between treasuries and bonds has 99.3% Maker (MKR) token support, albeit from just 12 voters. Governance participation at Maker is presently at its lowermost level in 2022 with 169,196 MKR tokens staked.
The poll ends on June 30 at 12 pm ET, parting just a short amount of time for other voters to pick a side, refrain, or reject the options.
Once an option is chosen, European wholesale lender Monetalis will provide MakerDAO entree to the financial instruments it wants. Allan Pedersen, the Monetalis CEO delivered the Signal Request in the forum with options that his firm could provide the DAO.
The DAO’s decision to invest such a large amount of funds is based on references by several members who believe that arranging the unused funds could help boost the protocol’s bottom line with minimal risk.
MakerDAO’s Strategic Finance Core Unit member Sebastien Derivaux suggested in a June 20 assessment of the allocation’s viability that while the amount in question seems relatively high, it should be a safe choice for the DAO.
“An investment of 500M DAI in this context, that is expected to remain liquid and low volatility, is therefore not a significant risk for the DAI peg nor the solvency of MakerDAO.”
Derivaux recommended that the two options currently being voted on were the best of the five that were up for debate.
According to CoinGecko in spite of the landmark move for Maker, MKR is down 1.6% over the past 24 hours and trading at $964.71.
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