BlockTower Credit, an asset management organisation, recently teamed with MakerDAO and Centrifuge to bring $220 million in real-world assets (RWA) into the DeFi ecosystem.
This collaboration will enable BlockTower to issue DAI loans secured by these RWAs, bringing transparency and new revenue streams to all parties involved.
To bring these assets to DeFi, MakerDAO will issue four separate vaults to fund RWA investments. The debt ceilings for each of these four vaults will be different: 20 million, 30 million, 30 million, and 70 million DAI, respectively. The option of four vaults, each with a separate loan ceiling and collateral, provides for risk diversification and return optimization.
The assets offered would be of shorter term and easier to liquidate. Vault 1 will concentrate on entire loans or receivables arranged by BlockTower and originated by prominent consumer lenders. Vault 2 will concentrate on senior secured loan facilities, with a focus on FinTech and traditional asset-backed methods not developed by banks.
Vaults 3 and 4 will contain investment-grade structured credit assets, predominantly consumer and auto loans, with varying maturities.
This collaboration offers possible benefits and money to each entity involved. This collaboration will allow MakerDAO to have access to a wider range of assets, strengthening its stablecoin, DAI, and assisting the DAO in producing more revenue streams.
Furthermore, the emphasis on RWAs could be because these real-world assets generate a lot of revenue for MakerDAO. Despite representing for only 12% of total assets, RWA handled 57% of MakerDAO revenue, according to Messari.
Despite MakerDAO’s ongoing efforts to boost revenue and diversify its assets, major addresses have remained uninterested in the MKR coin. One explanation could be the increasing MVRV ratio and the negative long/short ratio.
The high MVRV ratio encourages short-term holders to sell their positions at a profit, which may influence the price of the MKR token in the short run.
Meanwhile, as of press time, the price of MakerDAO was $634.39, up 1.84% in the previous 24 hours.