MakerDAO community has approved the first 'real-world' tokenized assets to be used as collateral for minting DAI stablecoins. A recent vote by the community saw the inclusion of tokenized music streaming royalties and trade invoices within MakerDAO's staking portfolio.
This initiative was led by Centrifuge, a startup whose protocol enables the tokenization of real assets into securities. The digital assets can then be used to stake against interest-bearing tokens within Ethereum's ecosystem.
Notably, Centrifuge has partnered with ConsolFreight and Paperchain. These two entities are the ones who initiated the tokenization of trade invoices and music streaming royalties, respectively.
Following the progress with MakerDAO, ConsolFreight and Paperchain tokens will debut as the first non-native crypto collateral. They join the likes of ETH, BAT, USDC, and wBTC, which was added as recently as May 2020 to leverage Bitcoin's liquidity.
Centrifuge CEO, Lucas Vogelsang, has since told The Block in an email that they will advance into the finer details of smart contract security, risk models and oracle deployment.
MakerDAO's Collateral Expansion
This leading ETH based protocol has had several highlights since it began in 2020. The platform added USDC stablecoins as collateral back in March when it was facing liquidity issues.
It later expanded its range with wBTC, which has since taken over as the second most popular MakerDAO collateral. While the expansion of its staking pool seemed to take the forefront, MakerDAO has not been short of challenges given a $28 million class-action suit attributed to black Thursday.