Gemini co-founder Tyler Winklevoss has put to the MakerDAO community a proposal to accrue an annual percentage rate of 1.25% on deposits in the PSM in the Gemini Dollar (GUSD) stablecoin.
.@Gemini co-founder @tyler published a proposal on the Maker Forum that aims to contribute to MakerDAO a 1.25% rate on the PSM’s GUSD balance, as long as the PSM’s GUSD average monthly balance is above 100 million GUSD on the last day of the month.
— Maker (@MakerDAO) September 29, 2022
GUSD — a US dollar-pegged stablecoin, issued by Gemini. In recent months the exchange has expanded the supply of the asset — in August 2022 the metric increased by 80%.
The Winklevoss proposal envisions an annual percentage rate of 1.25% provided that the average monthly GUSD in the PSM exceeds $100 million. The exchange would bear the costs. According to Dune Analytics, as of writing the figure stood at $57,600.
The publication notes that the initial initiative runs for three months. The Gemini chief said the firm would decide on extending the period by the end of December.
In addition to the GUSD volume requirement in the PSM, the firm set another condition — MakerDAO would have to establish a legal entity and undergo KYC to register an account at Gemini. The latter is required to receive assets and place them into the protocol.
Earlier, MakerDAO co-founder Rune Christensen proposed to detach the decentralized stablecoin DAI from the dollar.
In September 2022 the cryptocurrency exchange Coinbase proposed transferring a third of the USDC in the PSM, worth $1.6 billion to Coinbase Prime at a rate of up to 1.5% per year.
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