MakerDAO (MKR) to Deploy $100 Million to DeFi Protocol Yearn Finance
MakerDAO (MKR), one of the largest decentralized finance (DeFi) platforms in the world, has voted in favor of a proposal to deploy $100 million in USDC to Yearn Finance to earn a yield. Around 72% voted in favor of the proposal submitted in November of last year. Maker is now going to open an individual non-custodial vault at Yearn Finance and deposit a max of $100 million in USDC from its Peg Stability Module (PSM), which is there to back the value of Maker’s flagship decentralized stablecoin DAI. This investment strategy will allow Maker to earn around a 2% yield on its deposit. MakerDAO has been looking at where to park some of its $7 billion in PSM to earn additional yield and increase revenue since last year. In October, the DAO voted to deploy $500 million in U.S. treasuries and corporate bonds. A few weeks later, it moved $1.6 billion of USDC to Coinbase’s custody program Coinbase Custody to earn 1.5% of yield. However, in late November, MakerDAO rejected CoinShares’ offer to invest $100-$500 million of its reserves in corporate debt securities and government-backed bonds. As for the yield on MakerDAO’s stablecoin DAI, the community has recently voted to increase the DAI rewards rate, known as DAI Savings Rate (DSR), to 1% from 0.01%. MakerDAO is the second largest DeFi platform with $8.24 billion in total value locked (TVL), according to data from DefiLlama. Lido, the liquid ETH staking provider, recently overtook it. MakerDAO’s DAI is the largest decentralized stablecoin, with a $5.1 billion market cap. MakerDAO is one of the largest DeFi platforms in the market. Its decision to continue to earn revenue by deploying funds from the PSM is indicative of the difficult overall DeFi environment. You Might Also Like: MakerDAO (MKR) Votes to Increase DAI Rewards from 0.01% to 1%
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Read more: https://dailycoin.com/makerdao-mkr-to-deploy-100-million-to-defi-protocol-yearn-finance/
Text source: DailyCoin.com
