The DAI escrow fund now contains a total of $3.1 billion Real World Assets (RWAs) thanks to MakerDAO. This action is a part of Maker’s plan to diversify the assets supporting DAI and strengthen its resistance to market swings. The general stablecoin market is anticipated to benefit from the trend of stablecoins moving towards conventional assets.
Through the investments made in Monetalis Clydesdale, BlockTower Andromeda, and New Silver, the $101 million in MakerDAO RWA assets were accumulated. Of the $3.1 billion in RWA assets, $1.28 billion is currently stored in Andromeda’s Vault. By giving more traditional financial assets, including government bonds, a place in the reserve, MakerDAO hopes to diversify the assets supporting the $5.3 billion dollar-pegged stablecoin DAI.
Particularly with stablecoin projects, the shift towards traditional assets is becoming more obvious. Recently, Frax Finance also disclosed a plan to use sFRAX in order to capitalize on significant government bond income sources. MakerDAO’s increased emphasis on RWAs is encouraging for DAI’s stability. Government bonds are only one of the assets that MakerDAO is using to back DAI, making it more resistant to market volatility. As more stablecoins switch to using RWAs as collateral, the market as a whole is expected to become more stable and dependable as a result of this trend.