The MakerDAO community backed a proposal to store $100 million worth of USDC stablecoin in a Yearn Finance vault.
Governance members of Dai stablecoin issuer MakerDAO have authorized an initial request to transfer $100 million worth of USDC stablecoin from its reserves into a “vault” administered by Yearn Finance. The vault has a maximum value of $100 million and is anticipated to provide a 2% annual income for MakerDAO, worth $2 million.
The cooperation between MakerDAO and Yearn Finance, which was initially proposed by Yearn, a yield aggregator, in November 2022, still requires executive clearance. The Executive Vote is the last phase in the Maker Governance process and is used to apply technical modifications to the Maker Protocol.
This action is consistent with MakerDAO’s objective to generate revenue from its treasury reserves by luring centralized and decentralized companies to partnerships in which they deposit assets into the reserves.
In September 2022, Coinbase recommended MakerDAO deposit USDC worth $1.6 billion on its institutional platform, providing an annual income of 1.5%. MakerDAO has also distributed USDC to a number of decentralized financial platforms, including Aave, Compound, and Idle Finance.
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