In the world of decentralized finance, it can be difficult to keep track of all the new developments and innovations. However, these platforms are working towards a common goal; they all aim to solve the problems with trustless cryptocurrency exchanges and volatility that have plagued the industry so far. To this end, MakerDao has released a financing vehicle via RWAs.
The MakeDAO platform, which finances off-chain business activity, may not be crypto, but its popularity is growing.
On May 9, a shipment of Australian beef was sent to Hong Kong through one of the vaults in the project.
A Polkadot and Ethereum protocol called Centrifuge is being used to fund real-world business activities through DAI. ConsolFreight, who issued the DAI through Maker’s vault, financed the transaction.
MakerDao’s Financing Vehicle via RWAs
Mastercard’s blockchain traceability solution, Provenance, was used to create NFTs containing shipment and invoice information.
The venture would apply smart contracts and a stablecoin to supply chains, an industry ripe for innovation. Maker launched its DAI stablecoin two months ago as a financing vehicle for businesses using real-world assets (RWAs) to protect themselves from a potential crypto bear trend. In a week when the UST disaster is dragging down the entire stablecoin industry, MakerDAO’s project is a bright spot.
MakerDAO’s partnership with Centrifuge is designed to win business outside the cryptocurrency sector, even though crypto-native lending protocols answered Maker’s call quickly.
The transaction was detailed in a post on MakerDAO’s forum by ConsolFreight. The company described the post as the first of many updates now that it is “continuously using [its] Maker vault.”
Mastercard Provenance is used to track shipments worldwide by FreshSupplyco, an Australian supply chain digitization company.
Mastercard and FreshSupplyCo approached Maker to explore alternative sources of capital and faster approvals to meet the growing demand,” Maker said.
MakerDao’s Protocol Expansion
Maker’s forum lauded the transaction. MakerDAO’s growth core unit’s Hajive said they are confident the Mastercard pilot is just the beginning of bigger things to come.
“Hopefully this is the first of many exciting deals to come between all the involved parties as we show the world that together we can provide proof-of-provenance and scale supply chains with this beautiful technology,” said ElProgreso.
Social media reactions to the news were less bullish because some within the MakerDAO community are skeptics about the protocol’s expansion into real-world assets.
Randomishwalk said sarcastically “so the RWA breakthrough was meat vault? Vault? Vault? “ Hey_Johnno said “Thank god I dumped this s*%t coin at the beginning of April.”
“We’ve successfully transitioned to Proof of Steak for RWA protocol,” Lempheter tweeted.
Via this site.