One of the biggest altcoin companies in the market has started the voting process to buy Ethereum (ETH) for a total of $ 400 billion.
Giant altcoin company prepares for strategic investment
Maker (MKR), an Ethereum-based protocol, has implemented a strategic Ethereum (ETH) acquisition plan to grow its stake in the DeFi market. In June, MakerDAO voted to invest a total of $500 million in US Short Treasuries and IG Corp Bond. The vote yielded $400 million in funding representing 80% of Maker pools. The DAO is now initiating a new vote to initiate purchases with an allocation of 1 million DAI.
According to Maker, if the pilot is successful, the debt ceiling will rise from 1 million to 250 million DAI.
Maker also follows on Gemini and Coinbase
Maker buys Treasury and corporate bonds from investment and risk management giant BlackRock. The protocol also works with asset management platform Coinshares and crypto exchanges Coinbase and Gemini. Last month, Coinbase offered a 1.5% profit on investment in USDC at the cost of $1.6 billion in the protocol. Also, Coinbase says there will be no lock-in time and no custody price to hold USDC. Funds will be channeled through MakerDAO’s Peg Stability Module (PSM) smart contract. PSM performs various functions for MakerDAO, including maintaining the DAI’s parity with the dollar.
Gemini also submitted a precedent offer to MakerDAO. He offered Maker a 1.25% utility for a random Gemini (GuSD) stablecoin in PSM.
Maker often tries to generate some measure of income from its reserves. In February, he stated that he wanted to fix his bad launch at the same time with these funds. Maker is also subject to harsh criticism as USDC is always accumulating. A random disaster that will happen to USDC will also directly affect the protocol.