Sunday, June 23, 2024

MakerDAO community Votes in Favor to Approve custody of $1.6Billion in USDC with Coinbase.

The biggest cryptocurrency exchange in the United States, Coinbase, has teamed up with the decentralized lending platform MakerDAO to hold a significant quantity of USDC.

On 24 October, the MakerDAO community gave its approval to a Coinbase proposal that will let them receive incentives on their USD Coin (USDC) treasury holdings. This strengthens Coinbase’s commitment to USDC as a vital part of a new financial paradigm by expanding our USDC rewards program to an institutional client for the first time.

With its institutional-grade solution, Coinbase will hold $1.6 billion of MarkerDAO’s (USDC) treasury, giving the DAO the opportunity to receive up to 1.5% in incentives. This comes after the firm presented the request on September 6, and it was approved with 75% of the votes on Monday afternoon. Users of USDC can deposit security in exchange for DAI, the Maker’s stablecoin pegged to the dollar.

In a statement by Jeniffer Senhaji, who oversees MakerDAO’s expansion and business development, remarked“The additional monthly money earned by this agreement enables Maker to further progress its overarching objective to establish a worldwide, trustless financial future built on decentralized rails,” says the statement.

MakerDAO has a lengthy history of backing from Coinbase, which has supported it with its first Dai listing and given liquidity to the network. 

With $7.75 billion in total value locked (TVL), Maker is the largest decentralized finance protocol, according to DefiLlama. According to CoinGecko, MKR, the governance token of MakerDAO, is presently trading at $922, an 85% decline from its all-time high of $6,292.

In order to accumulate Ethereum and raise the proportion of decentralized collateral over the next three years, Maker will double down on physical assets.

In short-term U.S. treasury and corporate bonds, MakerDAO said earlier this month that it would invest $500 million. Because of this, the reports about Coinbase today represent another step in favor of centralized assets and corporations.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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