MakerDAO community votes to approve custody of $1.6B in USDC with Coinbase

Coinbase Prime, an institutional prime brokerage platform for crypto belongings, announced on Oct. 24 that it has entered right into a partnership with MakerDAO to develop into a custodian of $1.6 billion price of the stablecoin USD Coin (USDC), of which MakerDAO is the biggest single holder.

The MakerDAO neighborhood voted to approve the 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 response to Coinbase Prime, this transfer is not going to solely accrue tangible advantages for the MakerDAO neighborhood, nevertheless it additionally exemplifies the platform’s efforts to develop the stablecoin ecosystem. Coinbase expressed certainty that stablecoins will play a key position in creating an open, extra environment friendly, extra equitable monetary system that bridges the hole between the crypto and fiat worlds.

Jennifer Senhaji, who’s in control of development and enterprise growth at MakerDAO, mentioned:

“The extra month-to-month income generated by this deal permits Maker to additional advance its overarching mission to create a world, trustless monetary future constructed on decentralized rails.”

Associated: USDC adoption is lagging outside of the United States: Coinbase

Coinbase has a protracted historical past of supporting MakerDAO, having offered liquidity to the protocol and helped it with its preliminary itemizing of Dai (DAI).

On Oct. 14, Cointelegraph reported that MakerDAO’s revenue plummeted within the third quarter of 2022, brought on by a fall in mortgage demand and few liquidations, whereas bills remained excessive. In a sequence of tweets, Johnny_TVL, a Messari analyst and co-author of “The State of Maker Q3 2022,” shared 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 right down to 1.1
– G-UNI dominating, is that this growing liquidity and on-chain volumes for DAI?
– wBTC reliance on whales/establishments
– RWAs
– Endgame

1/n pic.twitter.com/OrJ7JvFSM3

— Johnny_TVL (@john_tv_locke) October 13, 2022