MakerDAO passed a proposal to deploy $100 million USDC to the annual finance wallet

Hoping to generate revenue while offering users what it is best known for, Ethereum-based stablecoin issuer MakerDAO has approved DAI. Suggestion $100 million to deploy Circle’s USD Coin (USDC) into a Yearn Finance yield-generating account called “Walt”

The proposal, presented on January 9, aims to find a way for MakerDAO to distribute its treasury allocations and generate output.

MakerDAO will generate output from the Arn Finance wallet.

After the approval of MIP92 (Maker Improvement Proposal 92), MakerDAO Plans to start depositing $100 million USDC on YearnFi investments to earn 2% annual yield, roughly $2 million per year on its YearnFi investments.

Founded by prominent DeFi developer Andre Cronje, Yearn finance is a production aggregator built on the Ethereum blockchain, which allows users to deposit crypto-assets into the service in exchange for production or interest over a period of time.

With a total of 95,666.284 of the maker’s native tokens, MKR voted, approximately 68,462 MKR, representing 71.56%, voted in favor of deploying USDC in Yearn Finance, while 27,204 MKR, representing 71.56% of the total. 428 votes. And 0.0% voted “abstain”.

Although MIP92 has been passed, the proposal still has to go through an executive vote to implement the concept.

MakerDAO attraction to USDC

Prior to the MIP92 submission, MakerDAO had already expressed interest in Circle’s dollar-backed token USDC. Late last year, DAI stablecoin operator Invested a huge amount of money With a collaboration with Coinbase to become the largest stakeholder in USDC.

As reported by NewsBTC, MakerDAO And Coinbase Prime has a total of USD 1.6 billion in custody, allowing both partners to earn a 1.5% return on accumulated assets. In particular, the recognition of stablecoins has 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 fluctuate from time to time, stablecoins are tied to the value of an underlying asset like the US dollar. Due to the nature of stablecoinsMany investors have found them attractive, especially as an important part of future finance.

USDC still lags behind USDT in adoption, with the goal always being to overtake the latter and become number one in market cap.

MKRUSDT price chart on TradingView
The MKR price is moving sideways on the 4-hour chart. Source: MKRUSDT ON TradingView.com

Coming back to MakerDAO, the protocol’s native token, MKR, is also growing to close the gap between its current price and its all-time high. Over the past 30 days, MKR has gained over 20% and is currently trading above $650 with a 24-hour trading volume of $22.3 million.

Featured image from BlockchainReporter, chart from TradingView

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