In order to strengthen the DAI, MakerDAO is transferring $500 million in stable assets that have historically served as safe havens for traditional investors during turbulent times.
MakerDAO has stated that the transaction will diversify MakerDAO’s balance sheet, reduce exposure to any one asset, and increase revenue. The announcement comes after the abrupt collapse of TerraUSD a few months back.
The DAI stablecoin – a stablecoin that hasn’t depegged – is released on an over-collateralized basis, as opposed to TerraUSD which employed an algorithmic mechanism to maintain its peg to the dollars. In prior conversations, it has been claimed that the holdings in short-term bonds and the US Treasury securities wouldn’t have an impact on DAI’s peg to the dollar.
80% of the aforementioned $500M will go to the U.S. short-term Treasurys, and 20% will go to investment-grade corporate bonds. As MakerDAO puts it, this move will help diversify their balance sheet into “scalable legacy finance investments, limiting exposure to any one asset and expanding revenue streams”. The investment will be initiated through the DeFi asset adviser Monetalis, and the digital asset bank Sygnum is slated to be the lead partner.