a16z backs MakerDAO proposal to move USDC from PSM to Coinbase Prime

Venture-capital firm Andreessen Horowitz backed Coinbase’s proposal to transfer one-third of USDC from MakerDAO’s stability module (PSM) to Coinbase Prime.

We’re excited to support @coinbase‘s proposal for USDC institutional rewards with @MakerDAO, which has a lot of positive implications for both parties and represents the beginning of a new potential partnership for @MakerDAO. https://t.co/g9QedlpmuG pic.twitter.com/a56mYE4aGR

— Porter Smith (@_portersmith) October 21, 2022

“We are pleased to support Coinbase’s proposal to pay institutional rewards for USDC through MakerDAO, which will positively affect both sides and mark the beginning of a new potential partnership with the project,” wrote Porter Smith, partner at Andreessen Horowitz.

According to Block Analytica, the amount of USDC in the PSM is estimated at $3.37 billion. If the MakerDAO community approves proposal Coinbase, assets worth $1.11 billion will be directed to the institutionally oriented Prime service. The funds will be placed at an annual rate of 1.5%.

Voting on the initiative will run until October 24. As of writing, the proposal had the support of more than 85% of participants.

Coinbase is a partner with Circle in the Centre consortium, which issues USDC. Andreessen Horowitz has provided funding to the cryptocurrency exchange and the MakerDAO protocol team.

In October 2022, Gemini head Tyler Winklevoss proposed that MakerDAO pay 1.25% per year on deposits in GUSD.

According to Messari analysts, in the third quarter the protocol’s revenue declined by 86%.

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