MakerDAO Approves Proposal to Increase US Treasury Investments By $750M

On March 16, MakerDAO, a lending protocol and stablecoin issuer, passed a proposal to increase its portfolio holdings of United States Treasury bonds by 150%, from $500 million to $1.25 billion.

This move is meant to boost the protocol’s exposure to real-world assets and “high-quality bonds” following the Dai stablecoin’s loss of its $1 peg during market volatility on March 11. 77% of Maker’s delegates approved the $750 million debt ceiling hike.

The bonds will be purchased with equal maturities, biweekly and over a six-month period, totaling 12 slots of $62.5 million each.

MakerDAO hopes to achieve a net annualized yield of 4.6-4.5% after custody, along with potential trading cost profits.