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.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.