Ethereum ($ETH) New Coinbase Proposal Would Boost This DeFi Protocol’s Revenue By $24M Annually
U.S. crypto exchangeCoinbase Global IncCOIN has put out a new proposal that would increaseMaker DAOsMKR/USD revenue by $24 million a year.
What Happened:In a newgovernance proposalreleased on Tuesday, Coinbase proposed transferring 33%or $1.6 billion ofUSD CoinUSDC/USD on MakerDaosPeg Stability Module(PSM) into Coinbases yield-bearing account.
Maker will pay zero custody fees on the USDC held on Coinbase Prime and earn 1.5% APY in rewards on the stablecoins deposited.
.@coinbase has put out a proposal to invest 1.6b out of the PSM into a yield bearing account. This will boost Maker revenue by 24m / year.
Maker has ~5.5b in USD-like collateral. This is one of the many proposals to generate yield from the real world.https://t.co/FLj2FzWIYm
hexonaut.eth (@hexonaut) September 6, 2022
Maker is a protocol built onEthereumETH/USD behind one of the longest-standing and most popular decentralized stablecoinsDAIDAI/USD. The PSM is designed to hard-peg the price of DAI to $1.
Why Its Important: One of the most urgent problems faced by Maker is its inability to invest its balance sheet correctly, said adcv, a member of the DeFi protocols strategic finance core unit.
Which is to say, highly underinvested, with knock-on effects that reduce the protocols ability to take risk and its attractiveness as a stablecoin, said adcv.
According to an image shared by adcv, Coinbases new proposal would make the puzzle pieces fall into place.
We have had a long and positive partner relationship with Coinbase for many years starting with support of DAI on the exchange years ago, then with the Dai Rewards campaign on Coinbase that started during the Foundation time, said a member of Makers growth core unit team.
This proposal reflects that on-going relationship in one of their newest institutional products.
Price Action:At the time of writing, MKR was trading at $717, down 4% over the last 24 hours.
