The MakerDAO community rejected CoinShares’ proposal to place up to $500 million of assets under the investment company’s management.
🚫 MIP86: CoinShares Active Treasury Management — rejected with 72% of the voting power.
MIP86 intended to invest up to 500 million USDC from the PSM into corporate bonds, with an investment strategy managed by @CoinSharesCo
→ https://t.co/NxhDlnMnZL pic.twitter.com/D3ZEP7jd44
— Maker (@MakerDAO) November 28, 2022
In September, CoinShares proposed to entrust part of the stablecoins from the stability module (PSM) for active management. The company planned to invest between 100 million and 500 million USDC in a portfolio consisting of corporate bonds and government bonds.
It was envisaged that the return on investments would track the SOFR rate, which at the time of writing stood at 3.8% SOFR.
However the proposal was rejected — more than 72% of all MKR that participated in the vote voted against the initiative.
As part of the current governance cycle, the MakerDAO community rejected nine proposals and approved only four. In particular, users supported the purchase of mortgage-backed securities worth $225 million, as well as the activation of a dedicated vault with the same amount to acquire ETF shares of BlackRock and to open credit lines jointly with Arrow Global.
MakerDAO is the largest DeFi protocol by the volume of assets locked in smart contracts. According to DeFi Llama, at the time of writing the project’s total value locked is estimated at $6.64 billion — of which more than $3.2 billion is attributed to the PSM.
Earlier in October 2022, the MakerDAO supported the proposal to transfer a third of USDC from the stability module worth $1.6 billion to Coinbase Prime at a rate of up to 1.5% per year.
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