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Sandeep Kumar Mishra
Jan 23, 2023

MakerDAO Agrees to Deploy $100M USDC on DeFi Protocol Yearn Finance

MakerDAO Yearn Finance
MakerDAO has approved a proposal to deploy up to $100 million in USD coin from its reserve on DeFi protocol Yearn Finance, where the deposited stablecoin will earn a yield.

Maker will open an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from its "peg stability module," or PSM, which backs the value of Maker’s decentralized stablecoin DAI.

What Does MakerDAO Stand to Gain from the Deployment on Yearn Finance?

According to the proposal submitted at the end of November, MakerDAO is predicted to earn a 2% annual yield with the strategy. Around 72% of voters favored the plan. For final implementation and the transfer of funds from the PSM, a further “executive vote” is necessary.

Maker is managed by a decentralized autonomous organization, where holders of the maker (MKR) governance token can vote on proposals.

Deployment to Bring in Steady Revenue

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.

MakerDAO Agrees to Deploy $100M USDC on DeFi Protocol Yearn Finance
Sandeep is an avid cryptocurrency enthusiast and a keen & passionate blogger. He has a strong mix of skills in the areas of computer networking, cryptography, algorithms, and data structures and specializes in ERC20 tokens. Lately, he is taking a lot of interest in blockchain-powered AI solutions, about which he is also reading and writing extensively. He has to his name dozens of deeply researched articles about cryptocurrencies, blockchain, AI, and IoT. Apart from that, he loves to keep track of the latest trends in social media and digital marketing space. Also, as a huge proponent of blockchain and cryptocurrencies, Sandeep tries to deliver all the latest cryptocurrency news to ardent crypto supporters like yourselves. If you like his content, feel free to follow him on LinkedIn.

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