MakerDAO Looks to D-Risk, Swap $500M in DAI for US Treasury
MakerDAO D-Risk
Modified Date:- Published Date:-Categories: Cryptocurrency
MakerDAOLooks to D-Risk, Swap $500M in DAI for US Treasury
MakerDAO, thegoverning body of the Maker Protocol, has launched a resolution inwhich members are voting to determine how to allocate US$500 million toTreasury funds. According to DAO members, they are trying to reduce risk bygoing 100 percent to US short-term treasuries or splitting one percent intotreasuries and long-term government bonds.
At the time of writing, 100 percent was the highest voteddecision in Treasuries. Sebastian Derryvaux, a member of MakerDAO'sStrategic Finance Core Unit, said the US$500 million DAI investment was"expected to remain liquid and low volatility, [so] it does not pose asignificant risk to the DAI peg nor the solvency of MakerDAO". . Theongoing turmoil in the cryptocurrency market has prompted Maker tocarefully decide how he will protect his community.
While MKR, Maker's utility token, buffered 50 percentfollowing the collapse of Terra, crypto lender Celsius – now on theverge of bankruptcy– borrowed 100 million DAI using ETH as collateral. Celsius' inability to repayborrowers has caused widespread pain in the crypto market, causing it tobleed more than ever.
To offer a new twist on the traditional collateralized debt obligation, we have partnered with MakerDAO, Maker Protocol, crypto lender Celsius and The Institute for Unstable Economics to create D-Risk, the first digital token that is structured like any other security and offers users one percent of their collateral back upon maturity.