A French bank is collaborating with a DeFi altcoin project. MakerDAO voted to approve the creation of an exclusive, RWA vault for Société Générale’s digital asset subsidiary. It is now possible for Société Générale–Forge, depositing OFH tokens as collateral, to borrow up to 30 million DAI. Meanwhile, MakerDAO currently has the ability to loan up to 171 million DAI to RWA. It also plans to invest 500 million DAI in US treasury bills and corporate bonds.
Société Générale, what does the altcoin project MakerDAO partnership bring?
MakerDAO is adding Société Générale to its vaults, as we reported as Kriptokoin.com. MakerDAO voted to integrate Société Générale’s digital asset subsidiary into their vault. It is now possible for the investment bank to borrow up to $30 million from the protocol.
Altcoin voted today to include the French multinational investment bank in its Real World Assets (RWA) list. 116,097 MKR (about 12% of the total MKR supply) decided to vote among 47 different voters. 83.16% of them were in favor and 16.84% abstained. Meanwhile, there was no vote against the motion.
Société Générale–Forge (SG-Forge), a subsidiary of Société Générale dedicated to digital assets. Therefore, MakerDAO will soon create a vault where it can receive a deposit of over-collateralized DAI loan in exchange for a deposit of “OFH tokens”. These tokens represent collateralized bonds rated Aaa by Moody’s and AAA by Fitch.
It is now possible for SG-Forge to borrow up to 30 million DAI. Also, like other MakerDAO users, on-chain liquidation is possible. For this, the guidelines set by MakerDAO especially for RWA cases must be followed.
MakerDAO expands collaborations
As you know, MakerDAO is a decentralized stablecoin issuer. It is possible for users to provide collateral to mint the DAI stablecoin. Stablecoins are cryptocurrencies designed to stay at par with a government-issued currency. It is quite normal to immediately think of Terra USD (UST).
SG-Forge’s OFH tokens are not MakerDAO’s first RWA. The protocol has already approved the listing of six different RWA vaults, including one US bank. This marks the first time in history that a traditional financial institution has been integrated into a decentralized finance (DeFi) platform.
Including Société Générale, MakerDAO is now able to lend up to 171 million DAI for secured real-world assets. The protocol also took steps to invest 500 million DAI in US treasury bills and corporate bonds to generate returns while diversifying their assets.
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