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.
