- MakerDAO Transfers $500M USD to Coinbase Custody Group Coinbase Custody.
- The crypto lending protocol acknowledged that the funds had been transformed to USDC utilizing PSM.
- Coinbase Custody will now pay MakerDAO a 2.6% annual revenue on deposits.
Crypto lending protocol MakerDAO has transferred $500 million. With this transfer, MakerDAO ensures an annual reward of two.6%, which implies an annual revenue of 13 million DAI.
Concerning the transfer, Coinbase Institutional (@CoinbaseInsto) tweeted:
Yesterday, MakerDAO revealed that Coinbase had deployed 500 million DAI from Coinbase Custody storage. After Maker Governance authorised the Coinbase Institutional Rewards supply, the funds had been transformed to USDC utilizing PSM (Peg Stabilization Module).
Subsequently, the transformed funds had been transferred to the designated Coinbase Custody account. Coinbase mentioned the transfer is step one within the USDC Institutional Rewards Program, which was launched in 2022. the fourth quarter.
in 2023 in April The MakerDAO neighborhood has authorised a proposal to open a real-world asset (RWA) repository on Coinbase Custody and switch as much as $500 million. USD USDC.
In keeping with the proposal, Coinbase Custody is strictly prohibited from taking possession of the property held within the specified account. Which means they aren’t allowed to lend, reinvest or use the deposited property in another approach.
The crypto lending protocol has the power to withdraw funds from storage inside 24 hours, and funds held in chilly storage are insured as much as $500 million.
Even earlier than that, in 2022 In October, the MakerDAO neighborhood authorised Coinbase’s proposal to permit a most of 1.6 billion USDC to be saved by means of Coinbase Prime. MakerDAO was alleged to earn a 1.5% reward on its USDC by holding the funds in an institutional custodian.
