[LeadBlock RWA USDC] Adding MKR / USDC Market

As a reminder the vision of the LeadBlock RWA USDC vault is to support the integration of real-world assets (RWA) into DeFi. Since launch we have seen continued growth of the asset class and growing interest in use of RWA by DAOs, tradfi players and web3 startups alike. We are currently looking to add a number of markets to the vault.

To start we are going to be adding to the vault the MKR / USDC 77% market. Maker has been at the forefront of RWA adoption for the last couple of years. They are arguably the largest holder of RWAs in the space.

Maker started to deploy into RWAs in 2021 and grew its allocation significantly from 2022 onwards. RWA’s were the largest component of Maker’s balance sheet in 2023 accounting for c.50%. One of the benefits of RWAs for Maker is that it enables the DAO to weather the volatility of the crypto space which impacts crypto backed borrowing demand (=low during bear markets). As we are in a bull market currently the RWA weight in the balance sheet has moved down to c.40% but remains very significant.

The MKR token serves as the governance token within the MakerDAO ecosystem. MKR holders therefore control how the $5bn balance sheet is deployed and how the profits are spent ($45mn already YTD according to Token Terminal).

Market Parameters

Loan token: USDC - 0xa0b86991c6218b36c1d19d4a2e9eb0ce3606eb48

Collateral token: MKR - 0x9f8F72aA9304c8B593d555F12eF6589cC3A579A2

Oracle: 0x6686788B4315A4F93d822c1Bf73910556FCe2d5a

IRM: Adaptive Curve IRM - 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC

LLTV: 77.0%

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