MakerDAO unanimously proposes to transfer USDC one.six billion into custody on Coinbase

USDC one.six billion will be transferred from MakerDAO into successful custody on Coinbase Prime, with an yearly return of one.five%.

According to the voting final results, the MakerDAO local community unanimously supported the proposal to transfer USDC one.six billion to Coinbase Prime custody and acquire month-to-month rewards.

Coinbase Institutional Rewards (MIP81) was authorized by Maker Governance by a ratification survey.

https://t.co/7Hk6gqKTsO

This achievement permits the Core Units to begin onboarding 33% of PSM’s USDA in @Coinbaseinstitutional rewards plan.

🧵 ↓

1st/ pic.twitter.com/aOMdGev1QG

– Maker (@MakerDAO) October 24, 2022

In individual, USAakerDAO will use one.six billion USDC from the treasury participating in Coinbase’s institutional rewards plan, Maker Governance has entry to close to-instantaneous (<6 minutes) mint, burn, pay and withdraw functions on Coinbase Prime. In return, Coinbase is responsible for calculating the monthly reward and paying it on the fifth business day. Maker does not pay custody fees to Coinbase.

Jennifer Senhaji, Head of Business Development at MakerDAO, said in a statement:

“This proposed partnership with Coinbase (COIN) has been approved by the MakerDAO community, which is in line with Maker’s intention to invest collateral in short-term bonds.”

In the moment in which Coinlive first reported the aforementioned news88% of the votes were in favor of the Maker MIP81 proposal on the same nod from the a16z investment fund.

Furthermore, a offer Another group was also approved with 68.75% of the vote, agreeing to transfer another 500 million USDC to a consortium that includes hedge fund Appaloosa and crypto broker Monetalis, which it will lend to Coinbase. The loan is secured in Bitcoin (BTC) and Ethereum (ETH) with an expected annual return of 4.5% to 6%.

At the same time, the MakerDAO founder’s ambitious plan to decompose the protocol into MetaDAO has been completed. For more details, read the following article.

Currently, Maker holds $ 8.6 billion in assets in its treasure to support DAI. More than half of them are USDC, stablecoin issued by Circle. The misallocation brought a lot of criticism to Maker, especially after Tornado Cash was banned from the United States.

In recent times, MakerDAO has continuously released urgent governance recommendations for the upcoming development of the project. In addition to allocating nearly $ 1.6 billion to Coinbase Prime, this DeFi protocol also decided to accumulate more stETH and invest $ 500 million in short-term bills and IG corporate bonds.To diversify assets and reduce dependence on the USDC.

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