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Hoping to generate returns while providing users with what it is best known for, MakerDAO, the issuer of Ethereum-based stablecoin DAI, has approved a proposal to deploy $100 million USD Circle (USDC) coins into a Yearn Finance yield-generating account called “skip.”

The proposal, submitted on Jan. 9, seeks a way for MakerDAO to split its cash allocations and earn yield.

MakerDAO will generate returns from Yearn Finance Vault

Following the approval of MIP92 (Maker Improvement Proposal 92), ManufacturerDAO plans to start depositing $100 million USDC into the Yearn Finance Vault to earn a return of 2% per year, or about $2 million per year on its YearnFi investment.

Founded by prominent DeFi developer Andre Cronje, Yearn finance is a yield aggregator built on the Ethereum blockchain, allowing users to deposit crypto assets into the service in exchange for yield or interest over a certain period.

With a total of 95,666.284 Maker native tokens MKR voted, approximately 68,462 MKR representing 71.56% voted in favor of the USDC rollout in Yearn Finance, while 27,204 MKR representing representing 28.44% voted against the whole idea. and 0.0% voted “abstention”.

Although MIP92 has passed, the proposal still needs to go through an executive vote for the concept to be implemented.

MakerDAO Attraction for USDC

Prior to the MIP92 submission, MakerDAO had already expressed interest in Circle’s dollar-backed token, USDC. Late last year, stablecoin operator DAI invested a large sum alongside collaborating with Coinbase to become the biggest stakeholder in USDC.

As reported by NewsBTC, ManufacturerDAO and Coinbase Prime have a total of $1.6 billion on deposit, allowing both partners to earn 1.5% return on deposited assets. Notably, stablecoins have seen rapid growth in recognition in recent years. As a result, investors now rely on these assets to protect the value of their investments.

Unlike traditional cryptocurrencies, which fluctuate from time to time, stablecoins are tied to the value of an underlying asset, such as the US dollar. Due to the nature of stablecoinsmany investors have found them attractive, particularly as an essential part of future financing.

With USDC still lagging behind USDT in adoption, the goal has always been to outperform USDT and become number one by market capitalization.

MKUSDT Price Chart on TradingView
MKR price is moving sideways on the 4-hour chart. Source: MKUSDT on TradingView.com

Returning to MakerDAO, the protocol’s native token, MKR, has also thrived to cover the gaps between its current price and its all-time high. Over the past 30 days, MKR has jumped over 20% and is currently trading above $650 with a 24-hour trading volume of $22.3 million.

Featured image from BlockchainReporter, chart from TradingView



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