MakerDAO has approved a proposal to increase their US Treasury investments by $750 million.

MakerDAO's plan of action calls for a 150% rise in its possession of US bonds, which is intended to spread out the collateral backing Dai stablecoin.

MakerDAO, a leading lending protocol and stablecoin issuer, has taken a major step forward in its mission to provide increased security and stability to its users. On March 16, the organization passed a proposal to increase its portfolio holdings of United States Treasury bonds by 150%, from $500 million to $1.25 billion. This bold move demonstrates MakerDAO's commitment to providing its users with increased safety and protection during times of economic volatility.

MakerDAO, the leading decentralized finance protocol, has recently seen their proposal to increase its protocol's exposure to real-world assets and high-quality bonds pass by an overwhelming majority of 77%. The proposal comes in the wake of the Dai (DAI) stablecoin losing its $1 peg during market volatility on March 11. The successful vote aims to provide MakerDAO with a $750 million debt ceiling hike, bringing its total debt ceiling to $2.5 billion.

“Under this new deployment, MakerDAO would use $750 million of USDC in the PSM to purchase more US Treasury bonds, thus diversifying its liquid assets that back DAI.”

MakerDAO, a well-known decentralized finance platform, has announced a new strategy that promises a net annualized yield of 4.6% to 4.5% to investors. The company will be purchasing bonds with equal maturities, biweekly and over a six-month period, for a total of 12 slots of $62.5 million each. Furthermore, MakerDAO mentioned that its revenue stream could also benefit from trading costs. This plan is sure to attract investors interested in a stable and satisfactory yield.

Maker's new strategy ladder for the next six months. Source: MakerDAO

Market yield on U.S. Treasury securities at 10-year constant maturity: Source FRED
The United States Treasury has recently released their market yield on their 10-year constant maturity securities. According to the Federal Reserve Economic Data (FRED) source, the Treasury continues to post strong yields for their investors. This is good news for those who have invested in U.S.

The U.S. Treasury has extended its $500 million allocation managed by decentralized finance (DeFi) asset adviser Monetalis Clydesdale, with the investment strategy having paid out $2.1 million in lifetime fees since October 2022. This extension was announced today by the MakerDAO team, who highlighted the success of the investment strategy in a statement. It was noted that the investment strategy had been lucrative since its inception in October 2022, having generated $2.1 million in fees. This news is being welcomed by the cryptocurrency and blockchain community, as it signals a greater willingness by the U.S.

Delegates at a recent governance forum were left feeling frustrated and unheard after no payment was received from Monetalis for the first half billion DAI. Delegates further complained that their questions, posted in Maker's Discord and governance forum, were not answered promptly, leaving them without enough time to analyze the proposal. With the delegates feeling unheard and their questions unanswered, the future of Maker remains unclear and unresolved.

Investors across the globe were thrown into a state of panic on March 11 following the collapse of Silicon Valley Bank. This market shakeup caused the de-pegging of several stablecoins, including USD Coin (USDC) and Dai. In an effort to ensure the stability of their currency, MakerDAO proposed a solution on March 13 through a Twitter thread. The proposed idea involved switching the exposure of MakerDAO's stablecoin to money market investments, such as U.S. Treasurys, with the aim of diversifying the liquid collateral of Dai. The proposal was met with an overall positive response, with many investors relieved that MakerDAO is putting forth such proactive measures to protect the stability of their currency.