DAI's Real-World Backing: MakerDAO Acquires $700M In US Treasuries For Collateralization

MakerDAO announced on Wednesday a significant addition of $700 million in U.S. Treasury bonds to its holdings, which took its total bond holdings to $1.2 billion, a move aimed at backing DAI with real-world assets. MakerDAO is a Defi lending protocol and the company behind the DAI (CRYPTO: DAI) stablecoin.

Timeline of Multi-collateral-dai, Maker

MakerDAO has purchased a second batch of U.S. Treasury Bonds worth a whopping $700 million. The purchase of part of the DeFi lending protocol's attempts to diversify the assets backing its DAI stablecoin.

MakerDAO, the organization behind the DAI stablecoin, has purchased $700 million worth of U.S. Treasury bonds, bringing the DAO's total Treasury bond holdings to $1.2 billion. The MakerDAO community had already held the preliminary vote to increase its U.S. Treasury bond holdings from $500 million to $1.25 billion in March.

MakerDAO, the DeFi protocol whose team is responsible for the creation of the DAI stablecoin, recently announced the completion of its acquisition of an extra $700 million worth of US Treasurys.

Amidst the bloodbath present ravaging the majority of cryptocurrencies, Maker (MKR) has managed to maintain its value and shown positive momentum. This current performance is noteworthy and has triggered the interest of investors and market observers.

Key Points: On Wednesday, an arbitrage bot borrowed $200 million worth of the dai stablecoin (DAI) from MakerDAO using the DssFlash contract. This contract permits users to borrow any amount of DAI without incurring fees, according to crypto data provider Arkham Intelligence.

Key Points: According to data from MakerBurn, the decentralized autonomous organization (DAO) MakerDAO has achieved a significant milestone, with its current annualized income reaching a record high of $95 million. This marks a substantial increase of 147% since the beginning of the year, making it the highest level recorded since mid-February 2022.

In a recent announcement, MakerDAO revealed that approximately 42% of the initial use cases for DAI, the stablecoin issued on the Ethereum blockchain, are within decentralized exchanges (DEXs).

In a move set to impact the decentralized finance (DeFi) ecosystem, MakerDAO, a leading Ethereum-based protocol, is gearing up for a crucial vote on a proposal to raise the savings rate for its stablecoin, DAI, to 3.33%.

The Makerdao collective is currently immersed in a discussion about the potential rise of the DAI stablecoin's savings rate to 3.3%. This suggestion was introduced by Block Analitica and revealed to the community on May 26 under the title “Stability Scope Parameter Changes #2.” Block Analitica Proposes Raising DSR to 3.

Decentralized finance (DeFi) protocol MakerDAO increased its DAI savings rate (DSR) to 1% in December 2022. The move led to over 35 million DAI being deposited within a month, as per MakerDAO.