MakerDAO, the world’s leading crypto lending protocol, recently approved a proposal allowing up to $500 million of USDC to be transferred to Coinbase Custody. MakerDAO is governed by a decentralized autonomous organization (DAO) in which holders of its native MKR token vote on proposals. Coinbase Custody will pay a 2.6% annual yield on deposits and must keep the tokens in cold crypto wallets. These funds will be insured up to the $500 million limit and Maker DAO is allowed to withdraw funds from the vault within 24 hours. This measure is part of a bigger strategy of diversifying Maker’s reserves and increasing its revenues through generating yield from traditional financial assets, such as U.S. Treasury bills and bank loans. This move to diversify MakerDAO’s reserves will provide reliable and stable cash flow for the protocol in the future.
Leonardo Cox
- 2023-04-20
MakerDAO Diversifies Reserves with $500 Million USDC Transfer to Coinbase Custody
MakerDAO, the world’s leading crypto lending protocol, recently approved a proposal allowing up to $500 million of USDC to be transferred to Coinbase Custody. This move of diversifying MakerDAO’s reserves is set to provide reliable and stable cash flow for the protocol in the future.
