MakerDAO Wants to Invest $500 Million into Treasuries and Bonds
The Maker Governance has decided to allocate 500 million DAI between different investment strategies. The community is now asked to help it choose one of them.
In a new tweet, the company revealed that “this allocation poll is a result of the passage of MIP65: Monetalis (a European wholesale lender, LD) Clydesdale: Liquid Bond Strategy & Execution”, providing a brief recap in a corresponding thread.
According to the company, MIP65 introduces “a new real-world asset vault with the purpose of acquiring USDC via PSM and investing them in high-quality liquid bond strategies held by a trust arranged by Monetalis.”
A Ratification Governance Poll with 76k+ MKR has already approved this new MIP, which does not allow “third parties or Monetalis to access the funds or change the terms of the legal structure.” However, the Maker Governance may trigger a liquidation via Executive Vote.
A single third party will also not be allowed to block “the ability of Maker Governance to make decisions or modify the structure” while all surplus generated by the legal structure “must be manually sent to the Maker surplus buffer every quarter.”
Once all the key aspects have been cleared, the MKR holders and Delegates will vote on how to allocate the 500 million DAI of this new vault. The choice is between US Short Treasuries, --100% composition of US Short-Term Treasuries, 40% 0-1 year US Treasury ishares ETF & 60% 1-3 year US Treasury ishares ETF from BlackRock – or US Short Treasuries (80%) and IG Corp Bond (20%).
Monetalis will provide MakerDAO access to the financial instruments it needs. The company’s CEO Allan Pedersen issued the Signal Request in the forum with options that his firm could provide the DAO.
Maker (MKR) is trading at $867 press-time.
