MakerDAO Looks to D-Risk, Swap $500M in DAI for US Treasury
DAI For US Treasury
Modified Date:- Published Date:-Categories: Cryptocurrency
MakerDAO Looks to D-Risk, Swap $500M in DAI for US Treasury
MakerDAO, the governing body of the Maker Protocol, has launched a resolution in which members are voting to determine how to allocate US$500 million to Treasury funds. According to DAO members, they are trying to reduce risk by going 100 percent to US short-term treasuries or splitting one percent into treasuries and long-term government bonds.
At the time of writing, 100 percent was the highest voted decision in Treasuries. Sebastian Derryvaux, a member of MakerDAO's Strategic Finance Core Unit, said the US$500 million DAI investment was "expected to remain liquid and low volatility, [so] it does not pose a significant risk to the DAI peg nor the solvency of MakerDAO".
The ongoing turmoil in the cryptocurrency market has prompted Maker to carefully decide how he will protect his community. While MKR, Maker's utility token, buffered 50 percent following the collapse of Terra, crypto lender Celsius – now on the verge of bankruptcy – borrowed 100 million DAI using ETH as collateral. Celsius' inability to repay borrowers has caused widespread pain in the crypto market, causing it to bleed more than ever.
Maker DAO, Treasury funds, Cryptocurrency, Bankruptcy, Ethereum, Crypto Lender Celsius, Crypto Market