The world’s largest decentralized finance (DeFi) lending protocol, MarkerDAO, has announced plans to invest $500 million in stock market instruments.
The money will be invested in short-term US Treasuries and investment grade corporate bonds. The plan was approved by members of the organization after months of voting. Of the total amount, $400 million will be invested in treasury bonds and $100 million in corporate bonds.
The conversion of native stablecoin MarkerDAO DAI will be overseen by DeFi asset advisor Monetalis. Digital Asset Bank Sygnum converts half of the funds, and management company Baillie Gifford the other half. These funds will then be used to purchase US Treasuries and corporate bonds.
The main incentive for investment was the DAO’s attempt to diversify the billions of dollars of funds that are currently collateralized by DAI, as well as find a way to profit from them. Right now, most of DAI Maker’s $9 billion collateral pool is tied to the USDC stablecoin and does not generate any profit. Members of the organization agreed that generating income from MakerDAO’s reserve assets would expand the capabilities of the protocol and provide capital investments.
Earlier, the Gemini marketplace, together with the MakerDAO community, launched a project aimed at popularizing the Gemini Dollar (GUSD) stablecoin.
Source: Bits
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