April

Coin

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">MakerDAO, a decentralized crypto lending protocol, <a aria-label="plans to double its investments (opens in a new tab)" href="https://www.bloomberg.com/news/articles/2023-09-29/crypto-s-new-darling-makerdao-ready-to-deploy-6-billion-in-treasuries" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">plans to double its investments</a> in short-term US Treasuries up to $6 billion. The move comes after the organization picked T-bonds as one of the assets backing its DAI stablecoin following the 2022 crypto winter. The decision reaped significant rewards, lifting MakerDAO’s governance coin MKR to an 18-month high.</p> 
<h3 id="what-is-makerdao">What is MakerDAO?</h3> 
<p>Borrowing and lending crypto via crypto was a tricky endeavor, mainly due to the significant price volatility inherent in these assets. However, one industry player made significant progress in making this process more reliable – the MakerDAO protocol.</p> 
<p>Notably, MakerDAO made its way up in the crypto lending space by combining loans with a stable currency, allowing users to borrow money and make predictions about how much they had to pay back. But apart from its innovativeness, MakerDAO displayed impressive adaptability capabilities.&nbsp;</p> 
<p>Specifically, the protocol decided in 2022 to diversify the assets backing its stablecoin DAI, rotating away from cryptocurrencies into short-term Treasuries and corporate bonds. The move came after an extreme <a href="https://tokenist.com/over-12000-cryptocurrencies-have-one-month-of-no-trading-volume-in-2022/" rel="dofollow" class="deco-link">crypto market downturn last year</a>, prompting MakerDAO to pursue more stable yields.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="makerdao-s-mkr-coin-up-176-ytd-amid-rising-yields">MakerDAO’s MKR Coin Up 176% YTD Amid Rising Yields</h3> 
<p>This decision was nothing short of an excellent choice so far for MakerDAO. To be more specific, the protocol’s native governance coin, MKR, skyrocketed 77% in the latest quarter, hitting the highest level since April 2022.&nbsp;</p> 
<p>According to crypto market data, MKR is one of the best-performing assets among large-cap cryptocurrencies in 2023, with a year-to-date surge of 176%. The coin’s price was $1,451 at the time of publication.&nbsp;</p> 
<p>Given the success, the lender plans to double its T-bonds investments. Earlier in the week, the organization <a aria-label="approved a proposal (opens in a new tab)" href="https://vote.makerdao.com/polling/QmPoLbah#poll-detail" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">approved a proposal</a> to invest up to $6 billion in short-term Treasuries, which is twice the current limit. MakerDAO has not made any new purchases since the proposal was passed.&nbsp;</p> 
<p>The Treasury yields have witnessed a monster rally recently, particularly after the Fed officials “hinted at keeping rates higher for longer,” noted eToro analyst Simon Peters. The surge fueled MKR’s ascent, although there are some signs that the rally <a aria-label="may be nearing exhaustion (opens in a new tab)" href="https://x.com/santimentfeed/status/1707216164739543469?s=20" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">may be nearing exhaustion</a> as traders get ready to take profits.&nbsp;</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=zw3Wv"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><em><strong>Do you think MakerDAO will eventually go back to crypto as a preferred asset to back its DAI stablecoin? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/makerdao-weathered-volatility-with-us-bonds-plans-to-buy-6b-more/">MakerDAO Weathered Volatility With US Bonds, Plans to Buy $6B More</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

MakerDAO Weathered Volatility With US Bonds, Plans to Buy $6B More

Table of Contents

Tokenist

Other articles published on Sep 29, 2023

3 cryptocurrencies to avoid buying next week

Crypto exchange WOO X team up with OpenTrade to revolutionize tokenized assets in Asia

Ledn Bitcoin Lender Ledn to Offer ETH and USDT Interest Accounts

XRP Steel Foundation Analysis Unveils Resilience Amid Regulatory Scrutiny

In its comment on the SEC vs. Binance case, Circle claims that stablecoins are not securities.

Shiba Inu Team Advises Investors To Do Their Own Research, Be Wary of Suspicious SHIB Partnerships

Join our free newsletter for daily crypto updates!