These investments primarily deal with short-term U.S. Treasury bonds, boasting an annual rate of interest of 4.5%. This transfer brings MakerDAO‘s complete RWA property to roughly $2.713 billion.
Notably, on September 7, MakerDAO added $50 million value of property to the DAI escrow fund, reinforcing its dedication to RWAs. Impressively, almost 80% of the platform’s price income over the previous yr stems from real-world property, cementing its place because the third-largest DeFi protocol by complete worth locked.
Nevertheless, RWAs have sparked debate throughout the neighborhood. Final August, founder Rune Christensen proposed a 25% exhausting restrict on the protocol’s real-world asset collateral, which incorporates centralized stablecoins. This proposal got here in response to the U.S. Treasury Division’s sanctions in opposition to Twister Money, elevating issues about broader authorities campaigns in opposition to digital property.
RWAs are on-chain representations of bodily or conventional monetary property, encompassing actual property, bonds, and invoices. The development of transitioning to conventional property is gaining momentum, with initiatives like Frax Finance exploring revenue sources from Authorities Bonds.
Moreover, an alliance devoted to advancing Actual World Asset functions within the blockchain house, that includes trade heavyweights like Coinbase, Aave, and Circle, has not too long ago been established, underscoring the rising curiosity on this sector.
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