Decentralized stablecoin DAI builder MakerDAO has added another $100 million to its total holdings of real-world assets (RWA).
MakerDAO recently added $100 million to its Monetalis and BlockTower vaults, bringing its total holdings of real-world assets, or RWA, to $3.100 billion, according to data from the Makerburn platform.
Each of the Monetalis and BlockTower vaults received $50 million, as seen on the platform.
Investing in RWAs, which are traditional, tangible assets, is a growing trend in the cryptocurrency world and MakerDAO uses these types of assets as collateral or guarantee to issue DAI and use the stablecoin in various investment strategies, which allow it to diversify its income beyond decentralized lending in crypto assets.
By mid-April of this year, MakerDAO held a total of $709 million in RWA, so as of today, real-world assets on MakerDAO have grown by over 400%.
Crypto blogger Colin Wu noted that MakerDAO's real-world asset holdings have increased by seventh time so far this month.
MKR up 11% this week
Following the news, the price of MKR, the native token of the decentralized protocol, reacted upwards, surpassing $1.480 per unit at the time of writing this article.
According to data from the CoinMarketCap platform, the price of MKR has registered a daily growth of 6% and a weekly growth of 11%.
Source: CoinMarketCap
MakerDAO’s market cap is over $1.450 billion, ranking it as the 35th largest cryptocurrency by market value. Currently, cryptocurrency traders are trading close to $120 million per day worth of MKR, which represents a slight 2% increase from the previous day’s trading volume for the token.
On the other hand, the decentralized stablecoin DAI, developed and governed by MakerDAO, is seeing an increase of more than 20% in its daily trading volume. According to data from CoinMarketCap, cryptocurrency traders are trading around $82 million worth of the stablecoin, which has a market capitalization of over $5.300 billion.
Currently, MakerDAO is the third most important decentralized protocol in the DeFi ecosystem, in terms of Total Value Locked (TVL), while DAI is positioned in the crypto market as the first of the decentralized stablecoins and the third among all stablecoins by capitalization.
MakerDAO's strategy with RWA
Real-world assets on MakerDAO are part of a strategy to “achieve positive returns in high interest rate environments and volatile markets,” the decentralized protocol’s developers explained in their Valid identity document of fintech innovation and strategy.
MakerDAO uses RWA assets as collateral to issue the DAI stablecoin, so it is also contributing to the tokenization of real-world assets; that is, helping to bring real-world assets, such as real estate and treasury bonds, onto the blockchain.
Earlier this year, MakerDAO reported a new $700 million investment in Treasury bonds, after the protocol's decentralized community approved the investment.
On the other hand, in March, crypto industry research firm Delphi Digital reported that MakerDAO's earnings from real-world assets accounted for 58% of its revenue. According to the firm, MakerDAO had earned profits of $3,8 million dollars through their investments in short-term U.S. Treasury bonds.
Continue reading: MakerDAO invests another $700 million of DAI reserves in Treasuries
