MakerDAO has approved the proposal to raise the investment ceiling of US treasury bond bonds to US $1.25 billion

It is reported that, according to official news, MakerDAO’s proposal to raise the investment ceiling of US treasury bond bonds from US $500 million to US $1.25 billion has been passed. This proposal won 77% of the votes. MakerDAO will use USD750 million in PSM to purchase more US treasury bond bonds, thus diversifying the current assets supporting DAI. These bonds mature every two weeks and will be purchased a total of 12 times over a six-month period for $62.5 million each. According to the proposal, the strategy expects a net annualized yield of 4.6% to 4.5% after deducting custody and expected transaction costs.

Interpretation of this information:

MakerDAO, a decentralized autonomous organization (DAO), has successfully passed a proposal to raise the investment ceiling of US treasury bond bonds from US $500 million to US $1.25 billion. This move is set to diversify the current assets supporting DAI, a stablecoin pegged to the US dollar. MakerDAO plans to use USD750 million in PSM to purchase more US treasury bond bonds, which will mature every two weeks and be purchased a total of 12 times over a six-month period for $62.5 million each. The proposal expects a net annualized yield of 4.6% to 4.5% after deducting custody and expected transaction costs.

The first keyword in this message is MakerDAO. MakerDAO is a decentralized autonomous organization that issues the stablecoin DAI based on the Ethereum blockchain. In the crypto space, a stablecoin is a cryptocurrency designed to maintain a stable value to reduce volatility inherent in cryptocurrencies. MakerDAO reduces the risk of the DAI token by collateralizing it with other cryptocurrencies that act as security for the value of the token.

The second keyword is US treasury bond bonds. US treasury bond bonds are financial instruments issued by the U.S. Department of Treasury to raise funds for the government’s budget. These bonds are an integral part of the financial system as they are considered a low-risk investment that offers stable returns. The purchase of these bonds by MakerDAO is significant as it diversifies the assets supporting DAI and sets a precedent for other digital asset organizations to follow.

The third keyword is PSM. PSM stands for Protocol DAI Savings Rate Module, a mechanism that reduces the DAI-USD exchange rate’s downward pressure. MakerDAO proposes to use USD750 million from the PSM to purchase US treasury bond bonds, as outlined in the proposal. This move is set to increase DAI’s stability and improve its value proposition by diversifying its assets.

In conclusion, MakerDAO’s proposal to increase the investment ceiling of US treasury bonds is a significant move that diversifies DAI’s assets and increases its stability. This move is a great initiative for the digital asset world and sets a precedent for other organizations to follow. The utilization of treasury bonds by MakerDAO highlights the importance of traditional financial instruments in the crypto space. The three main keywords in this message are MakerDAO, US treasury bond bonds, and PSM.