MakerDAO community votes to approve custody of $1.6B USDC with Coinbase
Institutional prime dealer platform for crypto property Coinbase Prime announced on Oct twenty fourth that it had entered right into a partnership with MakerDAO — the biggest single holder of USDC — to turn out to be a custodian of $1.6 billion value of the stablecoin.
The MakerDAO neighborhood voted to approve this custodianship which can permit its neighborhood to earn a 1.5% reward on its USDC whereas holding funds with a number one institutional custodian.
This system described the next yield schedule for the USDC onboarded by @MakerDAO:
• 1% APY on the primary 100 million USDC.
• 0.1% extra APY on every 100 million USDC thereafter.
• Rewards are to not exceed 1.5% APY.
3/
— Maker (@MakerDAO) October 24, 2022
In keeping with Coinbase Prime, this transfer won’t solely accrue tangible advantages to the MakerDAO neighborhood but additionally exemplifies the platform’s efforts to develop the stablecoin ecosystem. Coinbase expressed certainty that stablecoins will play a key function in creating an open, extra environment friendly, and extra equitable monetary system that bridges the hole between the crypto and fiat world.
Jennifer Senhaji, accountable for Progress & Enterprise Growth at MakerDAO, stated:
“The extra month-to-month income generated by way of this deal allows Maker to additional advance its overarching mission to create a world, trustless monetary future constructed on decentralized rails.”
Associated: USDC adoption is lagging exterior of the USA: Coinbase
Coinbase has an extended historical past of supporting MakerDAO, because it offered liquidity to the protocol and helped it with its preliminary itemizing of DAI.
On Oct 14, Cointelegraph reported that MakerDAO’s income had plummeted within the third quarter of 2022, which was brought on by a fall in mortgage demand and few liquidations, whereas bills remained excessive. Twitter account holder Johnny_TVL, a Messari analyst and co-author of “The State of Maker Q3 2022,” shared in a sequence of tweets that MakerDAO noticed its income plunge to only over $4 million in Q3, down 86% from the earlier quarter.
@MakerDAO third quarter was a painful one for the decentralized lender.
Notables:
– revs fell 86%, collateral ratio all the way down to 1.1
– G-UNI dominating, is that this growing liquidity and on-chain volumes for DAI?
– wBTC reliance on whales/establishments
– RWAs
– Endgame1/n pic.twitter.com/OrJ7JvFSM3
— Johnny_TVL (@john_tv_locke) October 13, 2022
