Crypto News– These investments predominantly center around short-term U.S. Treasury bonds, offering an attractive annual interest rate of 4.5%. This strategic move bolsters MakerDAO’s total Real World Asset (RWA) holdings to approximately $2.713 billion.
MakerDAO Makes Waves: 100 Million Dollars Injected into RWAs Marks the Move Toward Traditional Markets
Notably, on September 7, MakerDAO allocated an additional $50 million worth of assets to the DAI escrow fund, reinforcing its steadfast commitment to RWAs. Impressively, nearly 80% of the platform’s fee revenue over the past year can be attributed to real-world assets, solidifying its status as the third-largest DeFi protocol in terms of total value locked.
However, the integration of RWAs has sparked heated discussions within the community. Last August, founder Rune Christensen proposed implementing a stringent 25% limit on the protocol’s real-world asset collateral, which encompasses centralized stablecoins. This proposal emerged as a response to the U.S. Treasury Department’s sanctions against Tornado Cash, raising concerns about broader government actions targeting digital assets.
RWAs represent on-chain manifestations of tangible or traditional financial assets, encompassing domains like real estate, bonds, and invoices. The trend towards incorporating traditional assets is gaining momentum, with initiatives such as Frax Finance exploring revenue streams from government bonds.
Moreover, a coalition dedicated to advancing Real World Asset applications within the blockchain sphere has emerged, featuring industry heavyweights like Coinbase, Aave, and Circle. This development underscores the escalating interest and investment in this burgeoning sector.