- About 72% of MakerDAO voters voted in favor of a proposal to invest $100 million in USDC on Yearn Finance.
- MakerDAO will earn an approximate return of 2% on your deposit.
- A proposal must undergo an executive vote in order to be considered legitimate.
- MakerDAO invested $500 million in US Treasury and corporate bonds last October and transferred $1.6 billion to Custody Coinbase (NASDAQ:) to earn a yield of 1.5 percent last November.
MakerDAO (MKR), one of the largest decentralized finance (DeFi) platforms in the world, has voted in favor of proposing to deploy $100 million in USDC to Yearn Finance for yield.
Some 72% voted in favor of the proposal made in November last year.
Maker will now open a single non-security vault in Yearn Finance and deposit a maximum of $100 million in USDC from the Peg Stability Module (PSM), which exists to back the value of Maker’s decentralized stablecoin DAI.
This investment strategy will allow Maker to earn around 2% return on his deposit.
MakerDAO moves to increase revenue
MakerDAO has been looking into where to store some of its $7 billion in PSM to earn additional revenue and increase revenue since last year.
In October, the DAO voted to post $500 million in US Treasury and corporate bonds. A few weeks later, I transferred $1.6 billion into the Coinbase Custody Program to earn 1.5% return.
However, in late November, MakerDAO rejected CoinShares’ offer to invest $100-500 million of its reserves in corporate debt and government-backed securities.
As for the yield on MakerDAO’s DAI stablecoin, the community recently voted to increase the DAI reward rate, known as the DAI Savings Rate (DSR), to 1% from 0.01%.
MakerDAO is the second largest DeFi platform with a total value locked of $8.24 billion (TVL), according to data from DefiLlama. Lido, a provider of liquid ETH, recently passed it by.
MakerDAO’s DAI is the largest decentralized stablecoin, with a market cap of $5.1 billion.
on the flip side
- The proposal is still awaiting an executive vote to be considered fully legitimate.
Why should you bother
MakerDAO is one of the largest DeFi platforms in the market. Its decision to continue to generate revenue by distributing funds from PSM is indicative of the difficulty of the overall DeFi environment.
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MakerDAO (MKR) votes to increase DAI rewards from 0.01% to 1%