- The MakerDAO group has voted in favor of a proposal to buy $1.28 billion value of U.S. Treasuries.
- The proposal, dubbed Undertaking Andromeda, was put ahead by crypto funding agency Blocktower Capital.
- Maker is ready to change 1.28 billion DAI stablecoins for short-dated U.S. Treasuries with maturities starting from 0-6 months.
- The DeFi protocol bought $1.1 billion of presidency and company bonds earlier this 12 months.
DeFi lending platform MakerDAO is ready to buy a whopping $1.28 billion value of U.S. Treasuries in a bid to diversify the reserve belongings that again its DAI stablecoin. The group behind Maker voted in favor of a proposal, dubbed Undertaking Andromeda, to deploy a brand new vault with a debt ceiling of 1.28 billion DAI.
MakerDAO To Buy Quick-Dated US Treasuries
In accordance with the proposal submitted on MakerDAO’s governance discussion board earlier this month, Undertaking Andromeda was put ahead by Blocktower Capital Advisors LP below MIP90. As per the proposal, 1.28 billion DAI could be deployed to buy short-dated U.S. Treasuries that might be held in custody by Wedbush Securities Inc. The maturities of the federal government bonds will vary from zero to 6 months. As per the asset purchases schedule posted on the governance discussion board, 1/sixth (16.67%) of the entire DAI vault might be allotted to 0-1 month US Treasuries. Similar allocations have been listed for 1-2 month bonds, 2-3 month bonds, and so forth.
The polling web page confirmed that the MakerDAO group authorized the proposal with an awesome majority, with 99.99% of the votes in favor of Undertaking Andromeda. Blocktower Capital will obtain an arranger price equal to 0.15% of the vault, which comes out to over $1.9 million. Coinbase and Galaxy Digital will function change brokers on the transaction, facilitating the conversion between stablecoins and U.S. {Dollars}.
The approval for the $1.28 billion U.S. Treasuries buy comes simply months after Maker’s group authorized a proposal to extend its portfolio holdings of United States Treasury bonds by 150%, from $500 million to $1.25 billion. The most recent approval comes only a day after fellow stablecoin issuer Circle eradicated all U.S. Treasury bonds from the reserve fund backing its USDC stablecoin.