MakerDAO, a stablecoin issuer and decentralized finance protocol, has purchased an additional $700 million in U.S. Treasuries, bringing the total in its DAI stablecoin reserve to $1.2 billion. This purchase is part of the platform’s Endgame Plan to diversify the assets backing the $4.5 billion dollar-pegged stablecoin by increasing the role of traditional financial assets such as government bonds in the reserve. The purchase was approved in March and is managed by asset manager Monetalis.
The platform is undergoing a restructuring that includes breaking up its structure into smaller, autonomous units called SubDAOs and investing in yield-generating, real-world assets to boost protocol revenue. Monetalis CEO Allan Pedersen said in a statement, “Through the diversification of its collateral pool with this U.S. Treasury ladder strategy, Maker is taking advantage of the current yield environment and putting its assets to work.”
Voting members recently approved the onboarding of a new RWA vault managed by crypto asset manager BlockTower, marking the first step towards an additional UST purchase of up to $1.28 billion in the future. Additionally, they favored ditching $500 million of Paxos Dollar (USDP) and $390 million of Gemini Dollar (GUSD) from the reserve to pursue better yielding investments.