MakerDAO, a decentralized lending protocol, voted As an investment strategy, he opposed a proposal by crypto investment firm CoinShares to invest 100-500 million worth of community funds in a portfolio of corporate bonds and government-guaranteed bonds for yield.
72.43% of community votes opposed CoinShares’ proposal to invest MakerDAO funds in various traditional assets. If the community had voted in favor of CoinShare’s proposal, the cryptocurrency investment firm would be expected to “exceed the SOFR interest rate (3.01% as of October 26, 2022) in the community’s preferred currencies (DAI, USDC, USD…).” We would have provided APY to MakerDAO, which would have been withdrawable on-chain.
On the MakerDAO community board, I explained why several members voted against the proposal. A community member with the username “Feedblack Loops LLC” shared:
“Because the government voted for the surplus USDC that was available at the time, it will only say no to this type of proposal until the House is in place. I am optimistic about the revised/different approach.”
Another user named Llama, who also voted against the proposal, said, “We believe this proposal greatly exceeds the protocol’s risk tolerance.”
Related: MakerDAO Co-Founder Nikolai Musegian Dies in Puerto Rico at 29
In October, the MakerDAO community approved custody of $1.6 billion worth of the USD Coin stablecoin. (USDC) We use Coinbase Prime, an institutional prime brokerage platform for crypto assets. With custodianship, the MakerDAO community was expected to earn a 1.5% reward at USDC held on Coinbase Prime.
On Oct. 14, Cointelegraph reported that MakerDAO’s earnings plummeted in the third quarter of 2022. This was due to lower loan demand and a small number of liquidations, and costs remained high.
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