The partnership between BlockTower and MakerDAO brought $220 million in RWA to DeFi. Interest in MKR tokens waned as selling pressure mounted.
In a recent turn of events, asset management firm BlockTower Credit partnered with MakerDAO and Centrifuge to bring $220 million in real-world assets (RWA) into the DeFi ecosystem.
This partnership will enable BlockTower to issue DAI loans backed by these RWAs, ensuring transparency and new revenue streams for all parties involved.
1/ @BlockTower Credit appears to be capitalizing on an untapped asset class as the first institutional credit fund to tackle DeFi through collateralized real-world assets (RWAs).
Execution begins in its partnership with @MakerDAO and @centrifugebringing $220 million in RWAs onto DeFi rails.🧵 pic.twitter.com/IEMsnfV0yP
— Messari (@MessariCrypto) January 11, 2023
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Welcome to the real world”
To bring these assets to DeFi, MakerDAO must issue four separate vaults to fund RWA investments. Each of these four vaults has different debt limits: 20 million, 30 million, 30 million and 70 million DAI respectively. The choice of four vaults, each with a different debt ceiling and collateral, ensures diversification of risks and optimization of returns.
The proposed assets would be assets with a shorter maturity and easy to liquidate. Vault 1 will focus on full loans or receivables, which will be arranged by BlockTower and sourced from leading consumer lenders. Vault 2 will focus on senior secured credit facilities, with an emphasis on FinTech and non-bank traditional asset-backed strategies.
Vaults 3 and 4 will be investment grade structured credit, primarily consumer and auto loan based assets, with varying maturities.
For every party involved, this partnership promises potential benefits and revenue. For MakerDAO, this partnership will allow the company to access a more diverse range of assets, making its stablecoin and DAI more robust and helping the DAO generate additional revenue streams.
Additionally, the focus on RWAs could be because these real-world assets bring in a lot of revenue for MakerDAO. Despite representing only 12% of total assets, RWA handled 57% of the revenue generated by MakerDAO, according to Messari.
Source: Dune analysis
Meet your “MKR”
Despite MakerDAO’s continued efforts to increase revenue and diversify its assets, major addresses remained uninterested in the MKR token. One reason for this could be the growing MVRV ratio and the negative long/short ratio.
The high MVRV ratio gives short-term holders an incentive to sell their holdings for a profit, which could affect the price of the MKR token in the short term.
How many 1.10.100 MKRs are worth today?
Source: Sentiment
Meanwhile, MakerDAO’s price was $634.39 at the time of writing, up 1.84% in the past 24 hours.
This post MakerDAO enters into this new partnership: how will MKR react to it?
was published first on https://ambcrypto.com/makerdao-enters-this-new-partnership-how-will-mkr-react-to-it/
