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# System prepended metadata

title: 'MIP90: Liquid AAA Structured Credit & Money Market Fund'
tags: [Summaries]

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tags: Summaries
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# MIP90: Liquid AAA Structured Credit & Money Market Fund

This is a summary of the proposal and its effects upon ratification from GovAlpha's perspective:

- This is a valid proposal, eligible to enter the January 2023 Governance Cycle.
- This MIP takes on MakerDAO's intent to invest in short-term bonds as formally expressed in [MIP13c3-SP12: Invest in Short-Term Bonds](https://mips.makerdao.com/mips/details/MIP13c3SP12#specification).
- This proposal aims to onboard and activate a 600MM Dai RWA vault for the purpose of acquiring USDC via the PSM, and obtain 600MM USD of diversified, AAA (or equivalent) rated Structured Credit and Money Market Funds.
- The vault will remit quarterly collected interest to the Surplus Buffer. The proceeds generated from AAA Structured Credit positions will be reinvested, until Maker Governance passes an executive vote to trigger a liquidation of the portfolio.
- The portfolio will consist of:
    - 70% or less AAA Structured Credit with a 6% target gross return.
    - 30% or more of Money Market Funds with a 3% target gross return.
- The exact legal structure to implement MIP90 will be determined and shared after the initial approval of this MIP.
- Technical implementation does not require the development of new smart contracts with appropriate permissions and security to enable this lending structure. CES-001 will participate in the implementation process.
- This proposal has been assigned `High-Impact` based on the methodology listed [here](https://forum.makerdao.com/t/introducing-impact-estimations/14267).

***Disclaimer: These summaries are intended to be a guide and not a source of truth. You remain responsible for any actions you take on the grounds of this information. Please note the date when the summary was last updated to judge accuracy***

*Updated 2022-12-05*