Does MakerDAO’s announcement hint at wedding bells for TradFi, DeFi
The word “DAO” got off on the wrong foot with the crypto community, but eventually shed its hacker image and became recognizable as a future-facing trend. Now, an announcement from MakerDAO has the potential to again change what a DAO can, or can’t do.
MakerDAO shared that a US-based bank had submitted an application in order to onboard collateral. The application stated,
“A Trust Agreement will establish The Multi-Bank Participation Trust for the benefit of MakerDAO as a separate, bankruptcy-remote entity, with a regulated Delaware Corporate Trustee who will verify that all material actions of the Trust are carried out in accordance with MKR votes.”
In simple English, please? Well, this just means that the bank wants to enter into a Master Purchase Agreement with MakerDAO, for a participation trust. However, MakerDAO’s governance community members need to vote in favor of this, for the proposed TradFi x DeFi integration to take place.
More information about the role of the DAI stablecoin in the arrangement will likely come if the proposal goes through.
<p lang=«en» dir=«ltr» xml:lang=«en»>Huntingdon Valley Bank, a Pennsylvania Chartered Bank founded in 1871, has submitted a Collateral Onboarding Application to MakerDAO.If approved by Governance, it will be the first collateral integration from a US-based bank into the DeFi ecosystem.https://t.co/w1UpzyoxOm
— Maker (@MakerDAO) March 25, 2022
There are plenty of DAOs in the sea, so why is MakerDAO so special? And was it the right choice for this venture? Let’s take a look at what the metrics have to say.
At press time, MKR was trading at $2,004.74, having fallen by 0.16% in the past 24 hours. What’s more, transaction volumes at press time were also on the fall, in spite of MKR’s
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