MakerDAO Proposes Additional $750M U.S. Treasury Purchase to Back $DAI

MakerDAO, the DAO responsible for the $DAI stablecoin, is looking to invest an additional $750 million in US Treasuries to take advantage of the current yield environment. The proposal is an extension of the $500 million investment made in October last year, and if approved, the total investment in US Treasuries would be $1.25 billion.

The DAO plans to invest in six-month US Treasuries, using a ladder strategy with a biweekly rollover, allowing for equal maturities over the investment period. The ladder strategy is seen as flexible and cost-effective, and can be altered if needed.

Allan Pederson, the CEO of Monetails, a decentralized finance (DeFi) asset manager, praised the strategy, highlighting its low cost, tax efficiency, and inherent liquidity.

The proposal will be reviewed by the MakerDAO community before final approval.

$DAI is currently backed by 38.5% of $USDC, 11.7% of $ETH, and 9.6% of real-world assets which include the U.S. Treasuries.

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