MakerDAO Invests $100M in Yearn Finance, Earns 2% Yield on USDC Deposits

• MakerDAO’s community has approved a proposal to deploy up to $100 million in USDC from its reserve into a vault on DeFi protocol Yearn Finance.
• MakerDAO is expected to earn a 2% annual yield on USDC stablecoin deposits.
• The proposal was voted on with 72% of voters in favor of the plan.

The MakerDAO community recently approved a proposal to deploy up to $100 million in USDC from its reserve into a vault on the DeFi protocol Yearn Finance. The decision opens the way for MakerDAO to earn an estimated 2% annual yield on USDC stablecoin deposits.

The proposal, which was submitted at the end of November, was voted on with 72% of voters in favor of the plan. MakerDAO is the largest decentralized finance (DeFi) platform in the world, and the move to invest in Yearn Finance is a major step forward for the platform.

The funds will be invested in a non-custodial vault on Yearn, with a ceiling set at $100 million. The funds will be taken from MakerDAO’s „peg stability module,“ or PSM, which is used to back the value of Maker’s decentralized stablecoin DAI.

The aim of the move is to ensure that MakerDAO’s funds are earning a yield and to increase the platform’s overall liquidity. The investment in Yearn Finance is expected to be an attractive proposition for those looking to earn a return on their USDC deposits.

Overall, the move is an important one for MakerDAO, and it emphasizes the platform’s commitment to growing its presence in the DeFi space. It is expected that MakerDAO will become an even more attractive choice for those looking to invest in the space, and that the platform will continue to expand its reach and offerings.