With the hope of generating results while offering the most known users, MakerDAO, the issuer of the Ethereum-based stablecoin, DAI, has approved a proposal to distribute $100 million of Circle’s USD Coin (USDC) in Yearn Finance’s yield-generating account called the “vault.”
The proposal, submitted on January 9, aims to find ways MakerDAO can share treasury allocations and get results.
MakerDAO To Generate Revenue From Yearn Finance Vault
After the approval of MIP92 (Maker Improvement Proposal 92), MakerDAO plans to start depositing $100 million USDC into Yearn’s treasury to earn a 2% annual yield, approximately $2 million annually in YearnFi investment.
Founded by renowned DeFi developer Andre Cronje, Yearn finance is a revenue aggregator built on the Ethereum blockchain, allowing users to store crypto assets on the service in exchange for returns or interest over a period of time.
With a total of 95,666,284 Maker’s original tokens, MKR voted, approximately 68,462 MKR, representing 71.56%, voted to distribute USDC in Yearn Finance, while 27,204 MKR, representing 28.44% of all ideas. and 0.0% voted “abstain.”
Although MIP92 has passed, the proposal still needs to go through an executive vote for the draft to be implemented.
MakerDAO Attraction To USDC
Prior to the MIP92 filing, MakerDAO had expressed interest in Circle’s dollar-backed token, USDC. Late last year, stablecoin operator DAI invested amount is returned together with the collaboration with Coinbase to be the biggest stakeholder in USDC.
As reported by NewsBTC, MakerDAO and Coinbase Prime have a total of USD 1.6 billion in custody, allowing both partners to earn 1.5% return on deposited assets. In particular, stablecoins have grown rapidly in recent years. As a result, investors now rely on these assets to protect the value of their investments.
Unlike traditional cryptocurrencies, which currently fluctuate, stablecoins are tied to the value of an underlying asset, like the US dollar. Due to the nature of stablecoins, it can attract many investors, especially as an important part of future finance.
With USDC still lagging USDT in adoption, the goal is definitely to surpass the latter and become number one in market cap.
Going back to MakerDAO, the protocol’s native token, MKR, has also stepped up to close the gap between its current price and its high. Over the past 30 days, MKR has risen over 20% and is currently trading above $650 with a 24-hour trading volume of $22.3 million.
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