Coinbase proposes MakerDAO move one-third of USDC to Coinbase Prime

The cryptocurrency exchange Coinbase has put to a community vote a proposal from MakerDAO to transfer a third of USDC from the stability module (PSM) valued at $1.6 billion to Coinbase Prime at an interest rate of up to 1.5% per year.

Coinbase just proposed transferring 33% ($1.6 billion) of Maker’s PSM to Coinbase Prime.

With a 1.5% proposed interest rate, this would drive an extra $24 million in annual revenue.

Gotta imagine this proposal passes.https://t.co/nLoVWJMnUU

— Yano 🟪 (@JasonYanowitz) September 6, 2022

Coinbase is a partner of Circle in the Centre consortium, which issues USD Coin (USDC).

If approved, MakerDAO would earn $24 million per year under the institutional rewards programme. The platform does not charge custody fees for holding the assets.

Representatives of the bitcoin exchange noted that the proposal aligns with the protocol’s community-driven criteria for security, flexibility and cost structure.

The remuneration will be calculated on a monthly basis using the platform’s asset-weighted average, according to the following schedule:

• 1% on the first $100 million USDC;
• +0.1% on each subsequent $100 million USDC;
• 1.5% on amounts above $600 million USDC.

The terms will remain in effect until the end of 2022. The final payment will be made by the platform in January 2023.

As reported in August, plans to ребалансировки обеспечения стейблкоина DAI by selling USDC worth $3.5 billion for ETH were under consideration. Ethereum co-founder Vitalik Buterin criticised the idea.

This was followed by Circle being added to the sanctions blacklist of USDC addresses on the Tornado Cash mixer. This came after sanctions were imposed against the service by OFAC. In total, one of the stablecoin’s operators blocked movements of at least 75,000 USDC.

Subsequently, MakerDAO co-founder Rune Christensen proposed to detach the stablecoin from the dollar.

Earlier, the DeFi platform’s community approved a loan of $100 million in DAI to Huntingdon Valley Bank, founded in 1891 in the United States.

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