Decentralized Finance Pioneer, Set Up To Challenge Legacy Banking System, Moving $500 Million Into US Treasuries and Corporate Bonds

One of the original decentralized-finance protocols that was set up to challenge the legacy banking system is moving $500 million into short-term US Treasuries and corporate bonds. From a report: MakerDAO, the so-called decentralized autonomous organization that supports the crypto stablecoin DAI, is shifting $500 million worth of the token to the fixed-income obligations, which have traditionally been havens for conventional investors during times of turmoil. The move aims to diversify MakerDAO's balance sheet, limit exposure to any one asset and expand revenue, according to a statement issued by the DAO on Thursday. The allocation of DAI will promote the usability of digital assets in the traditional space, extending DAI's influence beyond crypto, the statement said. The community behind MakerDAO, which was launched in 2015, agreed to put 80% of the fund in short-term Treasuries and 20% to investment-grade corporate bonds, after an initial vote was put in place in late June.

Pretty sure the US Treasury doesn't take

[rsilvergun]

their funny money. What they're actually doing is taking the real money a bunch of suckers gave them and putting it into treasury bonds.

Re:

[awwshit]

My $0.01 of DAI is still worth $0.01.

At some point I decided that I could no longer bash crypto without trying it to understand it better. One of the first things I discovered about crypto, that you don't really hear about in the news, is the concept of crypto dust. When you convert tokens from one to another, say I convert some DAI to BTC, there probably is not an even swap and you end up with a tiny fractional amount of DAI left over - this is called dust. Some exchanges have sort of a dust collection fea

Re:

[iggymanz]

More to the point, when you exchanged you created a taxable event. Don't foget, because big brother IRS is watching you.

Re:

[awwshit]

Yeah, I paid those taxes. Still stuck with this dust.

IRL you cannot end up with fractional cents that you have to pay more to move/combine/exchange than its worth. For this and many other reasons, crypto generally seems immature and not ready for prime time.

Re:

[iggymanz]

DAI claimed to be a "stablecoin" that would keep its value close to a dollar, but its current value is about 40 cents, it's sunk over the past year. that's the 4th "stablecoin" I know of that's turned out to be not stable at all.

Not sure why you'd need to buy a cryptocoin to understand it, before being a true cryptocoin hater(tm). I've been doing fine in that regard just watching things burn.

Surely the "dust" is only a few dollars worth, what's the big deal? Cost of cryptocoin education the fun way.

Re:

[hdyoung]

Yup. First, I’ll believe it when they actually initiate a 500 million dollar transfer. And they WONT get the bonds until the clearinghouse verifies it. Tolerance for BS and funny money will be absolute zero. Second, it’s not exactly decentralized if they can move the money like that in one transaction. Seems pretty “centralized” to me. What, wild-wild-west ayn randian anarchy didnt quite work out the way you fantasized?

Re:So it's not "stable" any more?

[Joce640k]

So it's not "stable" any more?

Ummm.... converting coins to real money will garantee stability.

The real question is: Why use the middle man? If you want a coin that's linked to the US dollar then ... just use the US dollar.

Even better: Buy your own frikkin' bonds and earn some interest on it.

Challenge Legacy Banking System

[khchung]

By that, did they mean by sending a Lehman Brother like shockwave through the banking system when its ponzi scheme collapses?

Stable my ass on prune juice

[iggymanz]

When will people learn that stablecoins are a scam, not backed by what they claim?

Stablecoins aren't.

Doesn't look decentralized to me

[diffract]

Just call it what it is, an investment firm. No need for words like "decentralized" or "the community agreed"