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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Lending
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