MakerDAO, a decentralized autonomous organization that issues the DAI stablecoin, has voted in favor of allocating more funds to its current US Treasury investments. This increase in investments in government treasury bonds aims to diversify DAI’s stablecoin liquid backing through exposure to real-world assets (RWAs). The preliminary vote to increase the DAO’s real-world asset vault debt ceiling to 1.25 billion DAI ($1.25 billion) was passed, with the majority of the votes in favor of the proposal. This concluded poll is only a preliminary vote and will be put to an executive vote among DAO delegates if it passes.
MakerDAO began its RWA investment strategy last year with a $500 million allocation to U.S. Treasurys, a departure from its crypto-native lending strategy since inception. This pivot to RWAs comes as the crypto-native lending space took a battering in 2022 due to a year-long bear market, bankruptcies, and collapses. Despite this, DeFi lenders are still looking to make progress, with Aave and Compound releasing multichain upgrades of their lending protocols. These platforms are expected to play a significant role in the liquid staking derivatives market that could emerge following the activation of staked ether withdrawals after Ethereum completes its Shanghai upgrade.