Move comes despite founder’s reservations about real-world assets
The largest DeFi lender will soon invest up to $500 million USDC in US Treasuries and corporate bonds.
A $1 million test transaction has already been initiated the total amount will follow shortly. MakerDAO Aims to Boost Productivity of USDC, Maker’s Biggest Balance Sheet Asset, February Report Says forum post which preceded a governance vote in May.
Maker is the largest DeFi protocol with $7.6 billion in total value locked (TVL), according to The Defiant Terminal.
Manufacturer TVLSource: The Defiant Terminal
The USDC will come from what is called the peg stability modulus (MSP), which allows users to trade USD-pegged stablecoins like USDC for DAI, Maker’s stablecoin. The bond portfolio will be managed by Monetalis, a DeFi asset manager.
The decision to allocate up to $500 million to traditional assets comes at a time when Rune Christensen opposes further inroads into real-world assets such as corporate bonds.
In response to the Tornado Cash sanctions, the Maker founder wrote on the Maker forums that the regulatory environment has become increasingly divisive. “Either you are [a] fully compliant and regulated bank, or you are a terrorist,” Christensen wrote.
The vote to transfer assets to traditional bonds continues the trend of third parties seeking to partner with Maker – in late September, Gemini, the crypto exchange founded by the Winklevoss twins, offered to pay Maker 1.25% on the exchange’s GUSD stablecoin deposits.
Coinbase also offered to pay Maker 1.5% if the DAO deposits $1.6 billion USDC from its PSM into Prime, Coinbase’s institutional offering.
Chris Blec, Maker’s governance delegate, is strongly opposed to the proposed partnerships. “DAI is in grave danger of corporate capture,” he wrote on Twitterciting the movements of Coinbase, Gemini and Monetalis as examples.
The protocol’s MKR token has outperformed over the past month, rising 19% to $865 while Bitcoin was flat and Ether fell 19%.
MKR Price + ETH Price + BTC PriceSource: The Defiant Terminal