Maker steps into TradFi with $500m chest- Details inside
MakerDAO, the governing body of the Maker protocol, recently revealed that a community-wide vote that had been going on for months had concluded.
The goal of the vote was to determine how best to allocate the Maker treasury funds for the best investment. The outcome was the allocation of $500 million to corporate bonds and short-term U.S. Treasury bonds.
On 6 October, an executive vote from Maker token holders led the decentralized autonomous organization (DAO) to authorize a pilot transaction of $1 million, with the remaining money to be reassigned after community approval.
BlackRock’s 0-1y US Treasury iShares ETF (IB01) will get $160 million of the $500 million and the 1-3y US Treasury iShares ETF (IB03) will receive $240 million (SHY).
Baillie Gifford, an investment management firm, will purchase investment-grade corporate bonds with the remaining $100 million.
The proposal has been pushed by MakerDAO as a means of diversifying the holdings that are currently used as collateral for DAI, while also enabling the DAO to deploy unspent money and give the protocol more income without putting the DAI peg or MakerDAO’s solvency at unnecessary danger.
On 6 October, the trade chart revealed a rise in price for MKR, which was a favorable development. The asset price began trading at $841 and finished at $844. During the same trading session, it reached a high of $862 and finished with a gain of 0.12% by the end of the trade.
The upward trajectory of MKR’s movement could be visualized by using trend lines. Additionally, it was clear that the resistance line was in the $881 area, while the support line was around $712.
However, it appeared as though the resistance might be tested shortly; if it were to be broken, a new high might be
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