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–MakerDAO to be involved in Traditional Finance.
-The investment plan aims for the short term in the crypto journey.
-DAI stablecoins to be used as treasuries and bonds.
MakerDAO aims to Diversify
The DAI Stablecoin creator MakerDAO (Distributed Autonomous Organization) plans to diversify the portfolio. According to the organization, the allotment of DAI will “promote the usability of digital assets in the traditional space, extending DAI’s influence beyond crypto.”
The $500 million value of DAI Stablecoin will be converted into treasuries and bonds. The intense pressure induced by the bearishness of the crypto markets, several other protocols and major crypto-centric corporations are moving in this direction to secure survival. Another DeFi startup Lido, venture capitalist firm Dragonfly, helped by buying native tokens in order to cover two years’ worth of expenses.
After the generations of different blockchain platforms, devs made certain set of rules hard-coded in the network. It is impossible to break them, a DAO makes the possibility of human errors to zero. To enable the network’s upgrations process, users hold MKR tokens to participate in the vote regarding proposals which are finally enacted by the DAO.
On 27 August, MakerDAO’s co-founder Rune Christensen suggested the depegging of DAI from USDC and adapting it into a truly decentralized cryptocurrency. DAi is the one among the market leaders which are truly decentralized and it is the fourth largest stablecoins. It contributes a total supply of 6.3 billion in circulation which holds 4.2% of stablecoins market share.
The Final Step to be Executed
Head of MakerGrowth, Nadia Alvarez stated that “the 80-20 split between treasuries and bonds remained the favored approach during the voting process. This showcases the opportunity associated with the move, and seeing such adamant support from the community is very exciting.”
Digital asset bank Sygnum said it is the top associate in the $500 million change. Sygnum also highlighted that they are cooperating with BlackRock Switzerland to grant $250 million in the first phase of the procedure.
According to The Coin Republic, to continue the voting, 99.3% of MKR tokens support the split tendency for DAI investments in both treasuries and bonds. They might use the entire funds for the short-run investments in treasuries.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
