Last Updated on January 25, 2023 by Bitfinsider
Dai stablecoin issuer MakerDAO’s governance members have authorized a preliminary plan to deposit $100 million in USDC stablecoin reserves into a special investment account known as a “vault” administered by Yearn Finance. The vault has a cap of $100 million and is intended to provide a 2% annual income for MakerDAO, worth $2 million.
The collaboration between MakerDAO and Yearn Finance, which was initially proposed by Yearn, a yield aggregator, in November 2022, still need final approval by an executive vote. Executive Votes are used to execute technical modifications to the Maker Protocol and are the final stage in the Maker Governance process.
This action is consistent with MakerDAO’s aim of earning revenue from its treasury reserves by drawing interest from both centralized and decentralized entities for partnerships in which assets are deposited into the reserves.
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