MakerDAO reviews a proposal to extend its existing US treasury bond investments from $500 million to $1.25 billion

03/08 02:26

MakerDAO official tweeted that MakerDAO is reviewing a proposal to extend its existing US treasury bond investments from $500 million to $1.25 billion. The proposal, put forward by Monetalis, the original creator of MIP65, involves investing an additional $750 million into a 6-month US Treasury ladder strategy with bi-weekly maturities. According to the proposal, the strategy is expected to deliver a net annualized yield of 4.6% to 4.5% to the MakerDAO after custody and expected trading costs. To be implemented, the MIP65 debt ceiling extension must go through an on-chain governance cycle, including a Governance Poll and an Executive Vote, to be approved and implemented respectively. Under MIP65, MakerDAO deployed ~$500 million in short-term US treasury bond ETFs. As of January 2023, this investment strategy has brought ~2.1 million in lifetime fees to the Maker Protocol.
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