- This will generate more than 16% monthly revenue for the organization
- BlockTower Capital will manage the fund
- Before that, MakerDAO liquidated $500 million in USDP reserves
The vote on the proposal for a new real asset vault (RWA) MakerDAO under BlockTower Capital patronage ended yesterday, June 1. It was approved by a 99.9% margin.
The proposal calls for a $1.28 billion RWA called BlockTower Andromeda, backed by DAI. The funds will be used to purchase short-term U.S. Treasury bonds over a six-month period.
The initiative is expected to bring the organization a return of 16.67% each month. BlockTower Capital will receive an asset management fee of 0.15% of the investment, but no more than $1.9 million.
Custodial services will be provided by Wedbush Securities Inc.. This decision should be seen as part of MakerDAO’s comprehensive strategy to diversify its $5 billion DAI reserve.
Interestingly, the vote to eliminate $500 million worth of USDP tokens from the MakerDAO PSM also concluded on June 1.. The decision was taken unanimously. Paxos Stablecoin was deemed insufficiently liquid.
This is not MakerDAO’s first major investment in U.S. government bonds. The organization had previously invested $750 million in the position in March of this year.
It is possible that the quorum decision was influenced by the fact that the House and Senate approved the draft “debt” deal. This allayed recent fears that the U.S. would default after all.