MakerDAO Votes to Double Down on US Treasuries

MakerDAO, the decentralized organization behind the Maker protocol and its DAI stablecoin, voted to more than double its US Treasury holdings.

MakerDAO Votes to Double Down on US Treasuries

MakerDAO, the decentralized organization behind the Maker protocol and its DAI stablecoin, voted to substantially increase its US Treasury holdings.

After a recent vote in which 75% of voters were in favor of the move, the DAO will now allocate up to $750 million for purchasing treasuries.

This isn't the first time MakerDAO has bought treasuries, and the income generated from the DAO's previous Treasury buys and investments in other real-world holdings helped MakerDAO offset a significant revenue decline.

This new investment strategy could more than double MakerDAO's exposure to US Treasuries. In October 2022, the DAO voted to invest up to $500 million in treasuries and corporate bonds. It appears that this strategy has been beneficial in helping Maker navigate the bear market.

A report published last month by the DAO revealed a sharp decline in Maker's net income. The organization profited $90 million in 2021, but profit dropped to just $19 million in 2022. Despite representing only 10% of the DAO's holdings, real-world assets, including treasuries, generated half of the protocol's earnings.