MakerDAO Injects USD 100 Million Worth into Yearn Finance in USDC Stablecoins

JAKARTA – MakerDAO (MKR), one of the world's largest decentralized finance (DeFi) platforms, has announced that it will support a proposal to use $100 million in USDC stablecoins to invest in Yearn Finance.

In a vote that took place in November last year, about 72 percent cast their votes in favor of the proposal. With this support, Maker will now open individual non-custodial vaults in Yearn Finance.

Furthermore, MKR will deposit a maximum of USDC 100 million in USDC from the Peg Stability Module (PSM), which will support the value of Maker's flagship decentralized stablecoin, DAI. This investment strategy is expected to provide a return of around 2 percent for Maker. This is a major step for MakerDAO in pursuing investment opportunities and improving the financial performance of its platform.

In October, MakerDAO voted to use $500 million in US Treasury and corporate bonds. A few weeks later, MakerDAO moved $1.6 billion in USDC into the custody program Coinbase Custody for a 1.5 percent yield.

However, in late November, MakerDAO rejected CoinShares' offer to invest US$100-500 million of their reserves in corporate notes and government-backed bonds.

Additionally, the MakerDAO community also recently voted to increase the DAI reward rate, known as the DAI Savings Rate (DSR), from 0.01 percent to 1 percent. This is one way MakerDAO has used to increase its revenue.

Currently, MakerDAO is the second largest DeFi platform with a total locked value (TVL) of $8.24 billion, according to data from DefiLlama. Lido, an ETH staking provider, recently overtook it. MakerDAO DAI itself is one of the largest decentralized stablecoins with a market capitalization of 5.1 billion US dollars.

Overall, this shows that MakerDAO is constantly trying to grow its revenue and looking for ways to improve the financial performance of its platform.