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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 to deploy $100 million of Circle’s USD Coin (USDC) in a Yearn Finance yield-generating account called a “vault.”
The proposal, submitted on January 9, seeks to find a way for MakerDAO to allocate its cash allowances and obtain a return.
MakerDAO To Generate Yields From Yearn Finance Vault
Following the approval of the MIP92 (Maker Improvement Proposal 92), MakerDAO 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.
Founded by a distinguished andre cronje challenge developer, Annual finance is a performance aggregator constructed on the blockchain ethereum, enable users to deposit crypto assets into the service in return for a return or interest over a period of time.
With a total of 95666.284 native tokens from Maker, MKR on the ballot, ~68,462 MKR, that represents 71.56 per cent, voted for USDC's roll-out into Yearn Finance, This was followed by 27 204 MKR, 28.44 per cent voted against it and 0.0 per cent voted "abstention."
Although MIP92 was adopted, the proposal still requires an executive vote for implementation of the concept.
MakerDAO It's a USDC attraction.
Prior to the submission of the MIP92, MakerDAO had already expressed interest in the $token from Circle, the USDC. Late last year, the DAI stablecoin operator invested a hefty amount alongside collaboration with COINBASE to become the largest 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% returns from the deposited assets. In particular, the stabilizers have grown rapidly over the last few years. Therefore, investors are now relying on these assets to safeguard the value of their investments.
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, many investors have found them enticing, especially as a vital part of future finance.
With usdc still lagging behind in adoption, the objective has always been to overtake it and become number one in the market capitalization.
Returning to MakerDAO, the native token of the protocol, MKR, also flourished to cover the differences between its current price and its historical peak. In the last 30 days, mkr has jumped by over 20% and is currently trading at over $650 with a 24-hour trading volume of $22.3 million.
