Decentralized finance (DeFi) could soon boast a real-world use case.
MakerDAO, the organization behind the dollar-pegged stablecoin known as DAI, is in the process of voting on whether to further diversify the collateral it accepts for loans beyond cryptocurrency and tokens to include real-world assets (RWAs).
Specifically, Maker would also allow supply chain invoices and musicians’ future royalty streams as security when it lends out DAI. These assets would be represented on the Ethereum blockchain by non-fungible tokens (NFTs), the innovation that spawned CryptoKitties. Small businesses and artists could take the borrowed DAI, which usually trades 1-for-1 with the U.S. dollar, to crypto exchanges like Coinbase and convert it to cash.