MakerDAO Growth Profile picture
Oct 6 β€’ 12 tweets β€’ 6 min read
πŸ’ΈπŸ’ΈπŸ’Έ @MakerDAO just executed the first DAO balance sheet investment in US Treasuries and Corporate bonds with a ceiling of $500 million USDC.

How is that possible?

πŸ§΅πŸ‘‡ Image
First, we need to know that @MakerDAO holds ~$4 billion in stablecoins. πŸ’°

These assets come from the PSM operations β€” Maker's highly efficient decentralized exchange focused on stablecoins. Image
Basically, the PSM is a tool for swapping USDC, USDP, and GUSD for freshly-minted DAI at a 1:1 rate. πŸ”„

Every time a user puts their stablecoins to receive DAI in exchange, the PSM allocates these stablecoins as liquidity reserves. Image
The important fact here is that these reserves are investable assets. πŸ€‘

In accordance with the decisions made by Maker Governance, the Maker Protocol can deploy these reserves on different investment vehicles.

That means, in short, more revenue.
We all know what the current crypto market looks like. πŸ“‰

Following this situation, the demand for leverage through volatile assets decreased in Maker, removing a significant amount of stability fee revenue from volatile-asset vaults. Image
However, in this economic environment of rising interest rates and capital flowing out from volatile assets, the Maker Protocol is very well positioned with a strong balance sheet composed of USD-linked, investable stablecoins. πŸ“ˆπŸ“ˆπŸ“ˆ Image
The Maker community is aware of that. 🀝

In March 2022, Maker Governance voted in favor of a Declaration of Intent to invest this balance sheet in short-term, bond-linked investment vehicles, paving the way for future proposals to deploy this strategy

➑️… Image
In May 2022, Maker Governance voted in favor of MIP65: Monetalis Clydesdale, ratifying the previously voted Declaration of Intent again. 🀝

➑️… Image
MIP65 is a Maker Improvement Proposal submitted by Monetalis with the aim of investing $500 million from the PSM's USDC in a specific bond strategy composed of US Treasury and Corporate bonds.

πŸ‘‡ Image
The latest Executive Vote executed the first pilot transaction for MIP65: A 1-million-DAI Debt Ceiling Maker Vault from which Monetalis will draw 1 million DAI and deploy the first bond investment of the history of @MakerDAO through Sygnum Bank. πŸ’°

🀝… Image
Further Executive Votes will deploy the rest of the approved capital β€” 500 million, 80% in US Treasury and 20% in Corporate Bonds. πŸ—³ Image
There are more ongoing proposals that seek to invest the PSM reserves into different bond-linked strategies.

For further reading on this matter, we suggest you this thread:

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More from @MakerGrowth

Aug 18
Are you the one saying that DeFi protocols are censoring users or addresses flagged by regulations?

We are here to tell you that you're wrong by explaining the differences between decentralized protocols and user-interface providers.


1/ Image
First of all.

A protocol can be defined as a set of smart contracts that are publicly deployed on the Ethereum network.

They’re open-source code that follows instructions that are in turn validated by a decentralized network of nodes.

2/ Image
The Maker Protocol is a set of smart contracts publicity deployed on Ethereum.

It is open source code that follows instructions set by the code and validated by this network of nodes.

3/ Image
Read 16 tweets
Aug 16
The official Canonical Dai bridge is now deployed on @Arbitrum Nova!

What is Arbitrum Nova and why is the Canonical Dai deployment so important?

Let's go


@arbitrum Arbitrum Nova is a new chain built by @OffchainLabs for projects with very high transaction volumes that seek to drive costs even lower but still want high security.

This Arbitrum chain is different from Arbitrum One (the Rollup), and uses a new technology called AnyTrust.

@arbitrum @OffchainLabs Unlike Rollup chains, which directly inherit their security properties from the security of Ethereum, AnyTrust chains use a different security model which enables them to offer lower transaction fees.

Read 15 tweets
Aug 16
πŸ“ˆ There are different decentralized stablecoin protocols that generate organic Dai demand

πŸ’΅ One of them is @OriginDollar (OUSD)

Through its yield-capturing power, Origin is now backing 28 million OUSD with DAI β€” +58% of all its circulating supply

How does it work?


@OriginDollar πŸ’Έ Originally launched in 2020 by @OriginProtocol, OUSD is a stablecoin backed by other stablecoins β€” DAI, USDC, and USDT.

πŸ€‘ By deploying these underlying stablecoins into other DeFi protocols, OUSD generates passive yield income for its holders.

@OriginDollar @OriginProtocol πŸ“Š This yield is at 3.26% APY on a 30-day average.

πŸ“Š And, the 365-day trailing average is 11.21% APY.

Read 13 tweets
Aug 15
πŸ’ΈπŸ’Έ WSTETH-B Stability Fee is ZERO! πŸ’ΈπŸ’Έ

You can now mint DAI against your @LidoFinance stETH with ZERO fees, for FREE! πŸ€‘

πŸ—³οΈ The latest @MakerDAO Executive Vote executed this Stability Fee change that's already available on @oasisdotapp and @DefiSaver
Put your stETH as collateral. Mint DAI. NO FEE! πŸ’Έ

πŸ”΅ Oasis:…

🟒 DeFi Saver:…
WSTETH-B vault type's current parameters are:

1️⃣ Stability Fee: 0%

2️⃣ Minimum Collateralization Ratio: 185%

3️⃣ Debt Ceiling: 100,000,000 DAI
Read 4 tweets
Jul 27
Bear market?

πŸ“ˆ These are the best places to put your DAI in YIELD.

πŸ“ˆ Stable Dai Yield Farming Strategies.

πŸ“ˆ Up to 15% APY.

Let's go.

πŸ“ˆπŸ“ˆ @CurveFinance MAI+3Pool & @QiDaoProtocol.

🌐 Network: Polygon.
πŸ€‘ Current APR: 9.48%

Step by step

1⃣ Deposit your Dai on @CurveFinance MAI+3Pool pool through

2⃣ Deposit your MAI+3Pool LP tokens on @QiDaoProtocol MAI+3Pool3CRV-f farm through

3⃣ Start YIELDING!
Read 8 tweets
May 25
πŸŒ„ Ready for the Optimistic Summer anon?

$DAI and @MakerDAO are

@VelodromeFi announced that @MakerDAO will receive ~1% of initial voting power to steer $VELO emissions on its trading and liquidity marketplace, deployed on @optimismPBC

What does that mean?


🚴 First of all, what is @VelodromeFi?

Velodrome is an Automatic Market Maker that supports the growth of the Optimism ecosystem by providing an efficient trading and liquidity marketplace.

πŸ€‘ In Velodrome, liquidity providers receive VELO rewards.

πŸ—³οΈ In addition, veVELO is the vote-escrow state token. It is used by its holders to control which trading pairs receive VELO through gauge voting.

Read 7 tweets

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