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MakerDAO invests $500 million in U.S. Treasuries

The world's largest DeFi lending protocol, MakerDAO, announced yesterday, Thursday, October 6, that it would invest $500 million in American government and corporate bonds.

By Finst News
• 2 min read
MakerDAO invests $500 million in U.S. Treasuries

The world's largest DeFi lending protocol, MakerDAO, announced yesterday, Thursday, October 6, that it would invest $500 million in U.S. government and corporate bonds. According to Bloomberg, the investment will be split 80-20, with the larger portion going to U.S. Treasuries. An initial test transaction of $1 million has already been completed successfully, according to MakerDAO.

The investment is primarily funded by the DAI stablecoin. The goal is to diversify its own balance sheet, said View post on X

With this latest investment, dependence on a single currency is reduced. As a reserve for its own DAI stablecoin, the protocol has recently used large quantities of USD Coin (USDC).

It would also enable the protocol to earn interest on the held reserves, as U.S. Treasuries currently yield about three to four percent. The vast majority of the MakerDAO community voted for the investment. However, MakerDAO founder Rune Christensen has recently advocated a full removal of centrally managed assets as reserves.

In the wake of the Tornado Cash ban, Christensen's fears for his own project. As a solution, he proposed holding reserves in decentralized crypto assets like Ethereum.

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