MakerDAO Diversifies Holdings By Purchasing $700 Million Of U.S. Treasuries

• MakerDAO has purchased U.S. Treasury bonds worth a whopping $700 million.
• The DeFi protocol’s total Treasuries holdings now stand at $1.2 billion amid attempts to diversify its holdings.
• Maker’s first U.S. Treasuries purchase was with $500 million back in October 2022.
• The latest purchase marks the last step in the protocol’s Endgame Plan which was unveiled by its founder Rune Christensen.

MakerDAO has invested a whopping $700 million to acquire United States Treasury bonds in a bid to diversify its holdings. The decentralized finance protocol’s latest purchase is part of a broader plan to diversify the assets backing its $4.5 billion dollar-pegged DAI stablecoin by including more traditional financial assets such as government bonds. 

MakerDAO Brings Total US Treasuries Holdings To $1.2 Billion

According to a report by Bloomberg, MakerDAO’s bid to diversify its holdings has brought its total U.S. Treasuries holdings to a whopping $1.2 billion. This figure marks a significant increase since the DeFi lending protocol’s first government bond purchase of $500 million back in October 2022. The investment in these assets is the protocol’s way of increasing exposure to low risk, liquid traditional assets. 

“Through the diversification of its collateral pool with this U.S. Treasury ladder strategy, Maker is taking advantage of the current yield environment and putting its assets to work. Given the success of the initial deployment and today’s robust bond market, this increase in Maker’s real-world asset exposure is a strong, reliable, and flexible solution that will generate more revenue for the protocol.”

Monetalis CEO Allan Pedersen

The plan to acquire the latest batch of U.S. Treasuries was finalized earlier this month after the community behind Maker approved a proposal to increase the upper limit of a real-world asset (RWA) vault. The $1.25 billion vault is managed by digital asset manager Monetalis Clydesdale. The Monetalis Group reportedly completed the purchase of the U.S. Treasuries on behalf of MakerDAO.  This purchase marks the final step of the Endgame Plan which was unveiled by Maker’s founder Rune Christensen.