DAI stablecoin issuer MakerDAO invests $500 million of its DAI reserves into short-term United States Treasuries and investment-grade corporate bonds.
Following an executive vote from MKR token holders, the DAO authorized a pilot transaction of $1 million. The remaining funds will be soon reallocated after community approval.
The Maker token (MKR) holders chose the asset allocation, with 68,250 MKR tokens representing 57.67% of the overall voting pool choosing the 80-20 split. The allocation will consist of 20% investment-grade corporate bonds, and 80% U.S. short term treasuries.
With $160 million going to the 0-1y US Treasury iShares ETF (IB01) and $240 million heading to the 1-3y US Treasury iShares ETF from BlackRock, 80% of the $500 million will be invested in short-term US Treasuries (SHY).
The DAO has teamed up with Monetalis, an asset advisory company, for this allocation.
Monetalis’ allocation of the $500 million will be split evenly between Sygnum Bank and Baillie Gifford, two investment management companies. There will be two stages to this.
Sygnum will assist in converting 250 million of MakerDAO’s stablecoin into dollars in the first stage by partnering with BlackRock Switzerland.
Making this investment will help Maker diversify its balance sheet by adding scalable legacy financing investments, lowering exposure to any one asset, and diversifying revenue sources.
These advancements from MakerDAO come after the comments made by MakerDAO founder Rune Christensen in August advising its DAO community on the Discord server to seriously consider the precaution for de-pegging in their DAI with USD.
