December 9, 2022
MakerDAO Votes To Allocate $500M

Crypto winter hasn’t been kind to the project since its TVL has declined roughly two-thirds since December 2021. It’s time to vote on how to allocate MakerDAO Votes To Allocate $500M Into Minimal Risk Bonds And Treasuries, the self-governing decentralized company (DAO) behind DAI stablecoin.

Table of Content:

  • Market Navigation in a Bear Market
  • Extending beyond cryptography
  • When the voting is over

Market Navigation in a Bear Market:

A vote is underway to allocate $500 million in treasury funds to MakerDAO, the decentralized autonomous organization (DAO) behind DAI. By investing in United States treasuries and bonds, the proposal hopes to help the organization navigate the current bear market. 

The Maker Governance votes to determine just how 500 million DAI is divided among various investment methods, and the Maker DAO used Twitter to announce the news. 

The flow of MIP65 led to the appropriation survey: Monetalis Clydesdale:

“The members of the decentralized autonomous organization (DAO) must now decide whether to invest 100% of the dormant DAI in short-term treasuries or to invest 80% in corporate bonds and 20% in treasuries following a straw poll in a governance signal request”.

Extending beyond cryptography:

MakerDAO Votes To Allocate $500M Into Minimal Risk Bonds And Treasuries flagship DAI more capable of earning yield from traditional “safe” investments is an important step, as it signals Maker DAO’s intent to expand beyond crypto.

ETH, Wrapped Bitcoin, and nearly 30 other cryptocurrencies are exchanged for U.S. dollar-pegged DAI stablecoins issued by MakerDAO.

A significant majority of the manufacturing sector appears to be in favour of splitting the DAI between treasuries and bonds, which has actually been endorsed by 99.3% of citizens till now, despite the fact that this has been supported by just 12 citizens.

There is currently only 169,196 MKR invested in Maker administration throughout the recurring year. 

Voters rejected the idea on Jun. 27, with only 38.28% supporting it compared with 60.17% opposing it. 

Considering how to protect its community, Maker carefully decided how to handle the ongoing turmoil in the crypto market. ETH helped Celsius borrow 100 million DAI using MKR as collateral, while Maker’s utility token MKR gained 50 percent after Terra collapsed.

When the voting is over:

MakerDAO Votes To Allocate $500M

Due to the fact that Huntingdon Valley Bank Vault assets are collateralized off-chain rather than on Ethereum, the MakerDAO Votes To Allocate $500M Into Minimal Risk Bonds And Treasuries falls below a certain threshold. 

A survey is scheduled to begin at 12:00 pm EST on July 30th, 2022. Maker DAO will have access to the required financial tools once it has selected a choice with Monetalis, a European wholesale financier.

In response to participants suggesting that releasing additional funds in this manner would significantly improve the method, Maker DAO has actually decided to spend substantial amounts of cash.

The CEO of Monetalis, Allan Pedersen, issued a Signal Request with details about the company’s services in the online community. 

Three Arrows Capital (3AC) was given a notice of default last month by Voyager for failing to repay loans. In addition to 15250 Bitcoins and $350 million USDC, the crypto lending firm borrowed financing from Voyager Capital. July 1 marked the first day of 3AC’s bankruptcy filing in New York under Chapter 15 of the Bankruptcy Code.

In order to boost the protocol’s bottom line and carry minimal risk, MakerDAO has decided to invest significant funds in such a capacity. Despite the amount committed being significant, Sebastien Derivaux felt it was a safe choice when evaluating the feasibility of the allocation.

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