.MakerDAO, issuer of the DAI stablecoin, has proposed purchasing $750 million in U.S. Treasurys, which would add to a $500 million allotment last fall. BrandyBetz reports
The new proposal would have the DAO investing in six-month U.S. Treasurys using a ladder strategy with a biweekly rollover, meaning the purchased notes will have maturities that are equally split over the full period. The strategy would be flexible and Maker could move to a more complex or different ladder scheme, if needed.
DAOs are groups organized around a shared purpose or idea. These groups don’t have central leadership, but instead have community votes to make decisions and use software to carry out those decisions. Maker’s first U.S. Treasurys investment was intended to help further stabilize its DAI stablecoin, which was already overcollateralized at the time. However, stablecoins in general took a reputational hit when Terra’s UST stablecoin collapsed early last year.
“After review of various highly liquid money market options, we found that the simple solution of laddering U.S. Treasurys over a six-month period with biweekly maturities presents a strong, flexible and effective solution for Maker,” wrote Allan Pederson, CEO of decentralized finance asset manager Monetails, in a post. He noted the advantages to the strategy include the low cost, tax efficiency and inherent liquidity as the Treasurys mature on the ladder.
Pederson said Maker expects to see partner BlockTower proposing a similar allocation structure soon, but notes that Monetails requested the allocation happen immediately to take advantage of the current yield environment. However, Monetails doesn’t act as asset manager or investment adviser or have any influence on the purchase of the Treasurys. The asset strategy will instead be handled by Sygnum Bank.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Excluded workers' march across Manhattan Bridge calling for unemployment fundsDeveloping: So-called 'exclude workers' march across the Manhattan Bridge calling on Gov. Hochul to approve $500 million in unemployment funding.
Read more »
Jeff Bezos' $500 Million Mega Yacht Gets Test Run in Dutch WatersJeff Bezos' new mega yacht is up and running, giving us a first glimpse of what half a billion bucks will get you in a sea vessel ... and it's quite a sight to behold in open waters.
Read more »
1 in 4 Canadians can't afford a $500 emergency expense: Smart ways to access capital quicklyFind loans and financial services from Canada’s top companies
Read more »
Jeff Bezos’s $500 Million Megayacht Was Spotted Undergoing Test Trials in the North SeaJeff Bezos isn't just the king of e-commerce; he's also the captain of luxury. His $500 million megayacht, Y721 Koru, is now undergoing sea trials in the North Sea, and it's a sight to behold.
Read more »
Stimulus update: Direct $500 payment to be sent to more than 300 families in nine daysFamilies that were selected for California's guaranteed income program will receive their next $500 payment in just over a week, on March 15.
Read more »
Centennial man scammed out of $500 during Geek Squad tech support sessionTech support is supposed to help protect your computer, but a Centennial man said his computer was hacked — and he lost hundreds of dollars — during a service session with Best Buy's Geek Squad. via jaclynreporting
Read more »