Thursday, December 1, 2022
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MakerDAO adds Société Générale to its vaults and will be able to borrow up to $30 million in DAI

MakerDAO has voted to integrate Société Générale’s digital asset subsidiary into its coffers. The investment bank will now be able to borrow up to $30 million in the protocol.

The protocol voted today to include the investment bank in its list of Real Global Assets (RWA). 116,097 MKRs were committed to the vote (approximately 12% of the total MKR supply) across 47 unique voters, of which 83.16% were in favor and 16.84% abstained. There were no votes against the motion.

MakerDAO will therefore soon create a safe (vaults) in which Société Générale-Forge (SG-Forge), a subsidiary of Société Générale dedicated to digital assets, will be able to subscribe to 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 can be liquidated on-chain like any other MakerDAO user, following the guidelines specifically put in place for RWA vaults.

MakerDAO is a decentralized issuer of stablecoins. Users can provide collateral to mint the DAI stablecoin. Stablecoins are cryptocurrencies designed to stay at par with a government-issued currency, in this case, the US dollar.

SG-Forge’s OFH tokens are not MakerDAO’s first RWAs. The protocol has already approved the listing of six different RWA vaults, including a US bank, marking the first time in history that a traditional financial institution has integrated into a decentralized finance (DeFi) platform. Including Société Générale, MakerDAO can now lend up to 171 million DAI for collateralized real-world assets.

The protocol has also taken steps to invest 500 million DAI in US Treasuries and corporate bonds, to generate yield while diversifying its holdings.

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