MakerDAO Approves Deployment of $100M USDC on DeFi Protocol Yearn Finance
The decision opens the way for MakerDAO to earn an estimated 2% annual yield on USDC stablecoin deposits.
Decentralized-finance (DeFi) giant MakerDAO’s community approved Monday a proposal to deploy up to $100 million in USD coin (USDC) from its reserve on DeFi protocol Yearn Finance, where the deposited stablecoin will earn a yield.
Read more: How Does USDC Work?
According to the proposal submitted at the end of November, MakerDAO is predicted to earn a 2% annual yield with the strategy.
Some 72% of voters favored the plan. For final implementation and the transfer of funds from the PSM, a further “executive vote” is necessary, according to MakerDAO’s tweet.
Maker is managed by a decentralized autonomous organization, where holders of the maker (MKR) governance token can vote on proposals.
The maneuver is part of Maker’s strategy to earn a steady revenue stream by allocating a part of its $7 billion in reserve assets to various yield-generating strategies such as partnering with crypto exchange Coinbase’s (COIN) custody platform and investing in U.S. government bonds. DAI holders are receiving a 1% annual reward as a result of increased income since last month.
The move may also boost Yearn’s dwindling user activity. The protocol’s total value locked, a popular indicator to show the worth of assets deployed on a DeFi protocol, has dropped to $442 million from an all-time high of $6.9 billion in December 2021, according to data from DefiLlama.
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