The MakerDAO DeFi community has approved the creation of a $100 million DAI vault for Huntingdon Valley Bank of America, which was founded in 1891.

The voting cycle has ended.

117,540 MKR voted YES (87.24% of all voting power cast).

MKR holders have approved the addition of HVBank, the 100 million DAI debt ceiling participation facility proposed by Huntingdon Valley Bank, to the Maker Protocol as a new type of collateral. pic.twitter.com/HWqisl9xfi

— Producer (@MakerDAO) July 7, 2022

Huntingdon Valley Bank will be able to borrow stablecoins after collateralizing off-balance sheet loans.

Over the next 12 months, the bank’s borrowing ceiling could be raised to $1 billion. Huntingdon Valley Bank will use the funds received to support its lending operations.

MakerDAO will be able to get 3% yield per year. Delaware-based MakerDAO Bank Participation Trust will manage the bank’s lending assets on behalf of the DeFi protocol.

The decision was approved by the owners of 117,540 MKR (87.24% of the voters).

“HVB offer [Huntingdon Valley Bank] Improves MakerDAO’s stability and reputation. Financially, Maker offers a turnkey, diversified, and wholesale solution for generating real-world asset returns (not associated with cryptocurrencies). Hugh Ragsdale, spokesperson for MakerDAO’s real-world assets, told The Block.

According to community member ACRE Investment, the initiative could lead to “opening the floodgates” for other use cases other than traditional finance.

DeFi Watch founder Chris Black, who voted against the proposal, was concerned that a partnership with Huntingdon Valley Bank could cause regulatory problems for the bank.

As a reminder, the MakerDAO community has approved the distribution of 500 million DAI reserves in bonds.

Previously, the protocol suspended operations related to the Aave landing platform.

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