MakerDAO Adds Société Générale to Its Vaults
- MakerDAO just voted to approve the creation of a real-world asset vault dedicated to Société Générale’s digital asset subsidiary.
- By depositing OFH tokens as collateral, Société Générale–Forge will be able to borrow up to 30 million DAI.
- MakerDAO can currently loan up to 171 million DAI to real world assets; it also plans to invest 500 million DAI into U.S treasury bills and corporate bonds.
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MakerDAO has voted to integrate Société Générale’s digital asset subsidiary to its vaults. The investment bank will now be able to borrow up to $30 million from the protocol.
MakerDAO and Société Générale
MakerDAO is adding Société Générale to its vaults.
The protocol voted today to include the French multinational investment bank to its list of Real World Assets (RWA). 116,097 MKR were committed to the vote (about 12% of the total MKR supply) across 47 unique voters, 83.16% of which were in favor and 16.84% of which abstained. There were no votes against the motion.
MakerDAO will therefore soon create a vault in which Société Générale–Forge (SG-Forge), a subsidiary of Société Générale dedicated to digital assets, will be able to take out an overcollateralized DAI loan deposit against a deposit of “OFH tokens.” These tokens represent covered bonds that have been rated Aaa by Moody’s and AAA by Fitch.
SG-Forge will be able to borrow up to 30 million DAI and could be liquidated on-chain, like any other MakerDAO user, following guidelines specifically set up for RWA vaults.
MakerDAO is a decentralized stablecoin issuer. Users can provide collateral to mint the DAI stablecoin. Stablecoins are cryptocurrencies designed to stay at parity with a government-issued currency, in this case, the U.S. dollar.
SG-Forge’s OFH tokens are not MakerDAO’s first RWA. The protocol has already approved the listing of six different RWA vaults, including a U.S. bank, marking the first time a traditional financial institution was integrated into a decentralized finance (DeFi) platform in history. Including Société Générale, MakerDAO can now loan up to 171 million DAI for collateralized real-world assets.
The protocol has also taken steps to invest 500 million DAI into U.S. treasury bills and corporate bonds in an attempt to generate yield while diversifying its holdings.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.