On march 16th MakerDAO, a publisher of long-term stable bonds under loan contracts, approved a proposal to increase the asset allocation of its holdings of treasury bonds by 150%, from $500m to $1.25 billion.

The proposal aims to improve the openness of the agreement to real-world assets and "high-quality bonds", after its DAI (DAI) stable currency lost its $1 peg during market changes on March 11th. The $750 million increase in the debt ceiling won 77% permission from Maker representatives. A representative of MakerDAO informed Cointelegraph:

Under this new deployment, MakerDAO will use $750 million of PSM USDC to buy a large number of US Treasuries, thus diversifying its current assets for DAI.

The bonds will be purchased on the same maturity date, every two weeks and over six months, with a total of 12 tranches of $62.5 million each. Based on this development strategy, MakerDAO shows that the estimated net annualized income after escrow is 4.6 to 4.5 per cent. The proposal stresses that Maker revenue streams may also be boosted by transaction costs.

The proposal would allow Maker to "use the natural environment of current returns to generate more returns on Maker's PSM assets in a flexible and liquid form," it wrote. Federal Reserve (Federal Reserve) statistics show that on March 14, the interest rate on fixed-term 10-year contracts was 3.64%.

The move extends the $500m of Treasuries managed by Monetalis Clydesdale, an asset consultant for decentralized equity financing (Defi), since October 2022. "as of January 2023, this investment proposal has added about $2.1 million in lifetime fees," MakerDAO said. "

However, participants in the crackdown forum indicated that Maker did not receive all the payments for the top 500 million DAI from Monetalis. Delegates also complained that the challenges had not been effectively addressed at the workshop on Maker discord and governance, so there was not enough time to dissect the proposal.

On March 11th, the collapse of Silicon Valley Bank spread panic in the market, resulting in a number of smooth currency pegs, including dollar coins (USDC) and DAI. On March 13, MakerDAO posted an article on Twitter about uncertainty, stressing that its neighborhood was considering a proposal to open up its stable assets into financial market investments such as US Treasuries, with the aim of diversifying Dai's liquidity collateral.