{"id":16865,"date":"2023-01-25T19:52:58","date_gmt":"2023-01-25T23:52:58","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=16865"},"modified":"2023-01-25T19:52:58","modified_gmt":"2023-01-25T23:52:58","slug":"makerdao-passes-proposal-to-deploy-100-million-usdc-in-yearn-finance-vault","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/01\/25\/makerdao-passes-proposal-to-deploy-100-million-usdc-in-yearn-finance-vault\/","title":{"rendered":"MakerDAO Passes Proposal To Deploy $100 Million USDC In Yearn Finance Vault"},"content":{"rendered":"

In the hopes of generating yield while offering users what its best known for, MakerDAO, the issuer of the Ethereum-based stablecoin, DAI, has approved a proposal<\/a> to deploy $100 million of Circle\u2019s USD Coin (USDC) in a Yearn Finance yield-generating account called a \u201cvault<\/a>.\u201d<\/p>\n

The proposal, submitted on January 9, aims to look for a way MakerDAO could split its treasury allocations and earn yield.<\/p>\n

MakerDAO To Generate Yields From Yearn Finance Vault<\/h2>\n

Following the approval of the MIP92 (Maker Improvement Proposal 92), MakerDAO<\/a> plans to begin depositing $100 million USDC to the Yearn finance vault to earn a 2% yield annually, approximately $2 million every year on its YearnFi investment.\u00a0<\/p>\n

Founded by prominent DeFi developer Andre Cronje, Yearn finance is a yield aggregator built on the Ethereum blockchain, allowing users to deposit crypto assets in the service in exchange for yield or interest over some time.\u00a0<\/p>\n

With a total of 95,666.284 of Maker\u2019s native token, MKR cast in the vote, approximately 68,462 MKR, which accounts for 71.56%, voted in favor of deploying USDC in Yearn Finance, while 27,204 MKR, which accounts for 28.44% voted out the whole idea and 0.0% voted \u201cabstain.\u201d <\/p>\n

Though the MIP92 has been passed, the proposal still has to go through an executive vote for the concept to be implemented.<\/p>\n

MakerDAO Attraction To USDC<\/h2>\n

Before the MIP92 submission, MakerDAO had already demonstrated interest in Circle\u2019s dollar-backed token, USDC. Late last year, the DAI stablecoin operator invested a hefty amount<\/a> alongside collaboration with Coinbase to become the largest stakeholder in USDC.<\/p>\n

As reported by NewsBTC, MakerDAO<\/a> and Coinbase Prime have a total of USD 1.6 billion in custody, allowing both partners to earn 1.5% returns from the deposited assets. Notably, stablecoins have seen rapid growth in recognition in recent years. As a result, investors now rely on these assets to protect the value of their investments.<\/p>\n

Unlike traditional cryptocurrencies, which fluctuate now and then, stablecoins are tied to the value of an underlying asset, like the U.S. dollar. Due to the nature of stablecoins<\/a>, many investors have found them enticing, especially as a vital part of future finance. <\/p>\n

With the USDC still lagging behind USDT in adoption, the goal has always been to surpass the latter and become number one in the market cap.<\/p>\n

Veering back to MakerDAO, the protocol\u2019s native token, MKR, has also been thriving to cover the gaps between its current price and its all-time high. Over the past 30 days, MKR has surged more than 20% and currently trades above $650 with a 24-hour trading volume of $22.3 million.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

In the hopes of generating yield while offering users what its best known for, MakerDAO, the issuer of the Ethereum-based stablecoin, DAI, has approved a proposal<\/a> to deploy $100 million of Circle\u2019s USD Coin (USDC) in a Yearn Finance yield-generating account called a \u201cvault<\/a>.\u201d<\/p>\n

The proposal, submitted on January 9, aims to look for a way MakerDAO could split its treasury allocations and earn yield.<\/p>\n

MakerDAO To Generate Yields From Yearn Finance Vault<\/h2>\n

Following the approval of the MIP92 (Maker Improvement Proposal 92), MakerDAO<\/a> plans to begin depositing $100 million USDC to the Yearn finance vault to earn a 2% yield annually, approximately $2 million every year on its YearnFi investment.\u00a0<\/p>\n

Founded by prominent DeFi developer Andre Cronje, Yearn finance is a yield aggregator built on the Ethereum blockchain, allowing users to deposit crypto assets in the service in exchange for yield or interest over some time.\u00a0<\/p>\n

With a total of 95,666.284 of Maker\u2019s native token, MKR cast in the vote, approximately 68,462 MKR, which accounts for 71.56%, voted in favor of deploying USDC in Yearn Finance, while 27,204 MKR, which accounts for 28.44% voted out the whole idea and 0.0% voted \u201cabstain.\u201d <\/p>\n

Though the MIP92 has been passed, the proposal still has to go through an executive vote for the concept to be implemented.<\/p>\n

MakerDAO Attraction To USDC<\/h2>\n

Before the MIP92 submission, MakerDAO had already demonstrated interest in Circle\u2019s dollar-backed token, USDC. Late last year, the DAI stablecoin operator invested a hefty amount<\/a> alongside collaboration with Coinbase to become the largest stakeholder in USDC.<\/p>\n

As reported by NewsBTC, MakerDAO<\/a> and Coinbase Prime have a total of USD 1.6 billion in custody, allowing both partners to earn 1.5% returns from the deposited assets. Notably, stablecoins have seen rapid growth in recognition in recent years. As a result, investors now rely on these assets to protect the value of their investments.<\/p>\n

Unlike traditional cryptocurrencies, which fluctuate now and then, stablecoins are tied to the value of an underlying asset, like the U.S. dollar. Due to the nature of stablecoins<\/a>, many investors have found them enticing, especially as a vital part of future finance. <\/p>\n

With the USDC still lagging behind USDT in adoption, the goal has always been to surpass the latter and become number one in the market cap.<\/p>\n

Veering back to MakerDAO, the protocol\u2019s native token, MKR, has also been thriving to cover the gaps between its current price and its all-time high. Over the past 30 days, MKR has surged more than 20% and currently trades above $650 with a 24-hour trading volume of $22.3 million.<\/p>\n

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