MakerDAO moves ahead with $1.6 billion in Coinbase custody

Quick Take

Maker Improvement Proposal (MIP) 81, which would see MakerDAO move up to $1.6 billion USDC into Coinbase custody to earn institutional rewards, was ratified.
The community also ratified MIP 82 to facilitate a $500 million USDC loan to Coinbase, with ETH and BTC as collateral.

After the community behind DAI stablecoin issuer MakerDAO approved MIP 81, Coinbase Prime will custody up to $1.6 billion USDC from the protocol, the exchange said.

With MIP 81 ratified, MakerDAO joined Coinbase in its institutional rewards pilot program to earn 1.5% on the USDC for which Coinbase acts as custodian. Coinbase will maintain 24-hour year-round accessibility to the DAO Peg Stability Module (PSM) responsible for managing governance fees the MakerDAO earns from swaps.

The MakerDAO community also ratified MIP 82 in a step that will move ahead with the issue of a $500 million USDC loan to Coinbase collateralized via ETH and BTC and facilitated through the PSM at a variable interest rate between 4.5%-6%, paid monthly.