MakerDAO Approves $100M USDC Deployment on Yearn Finance for 2% Yield

• MakerDAO has approved the deployment of $100M USDC stablecoin on the DeFi protocol Yearn Finance, which is expected to earn an estimated 2% annual yield.
• Maker will open an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from its “Peg Stability Module.”
• 72% of MakerDAO voters supported the proposal, which will now go into final implementation and the transfer of funds from the PSM.

The MakerDAO community has approved the deployment of $100 million worth of USD coin (USDC) on the DeFi protocol Yearn Finance. The decision comes with the promise of a potential 2% annual yield on the stablecoin deposits.

The proposal to open a USDC vault on Yearn Finance was submitted at the end of November, and was approved on Monday with 72% of MakerDAO voters in favor. For final implementation and the transfer of funds from the PSM, a “executive vote” from Maker Governance is still required.

The funds will come from Maker’s “Peg Stability Module” (PSM), a reserve used to back the value of Maker’s decentralized stablecoin DAI. Maker will open an individual non-custodial vault on Yearn with a ceiling set at $100 million to deposit USDC from the PSM.

With this new strategy, MakerDAO is expected to earn an estimated 2% annual yield on USDC stablecoin deposits. The funds will be deployed in Yearn’s “bespoke on-chain vault,” a platform designed to maximize yield on deposits while providing a secure and liquid experience.

The deployment of USDC is part of MakerDAO’s ongoing effort to maximize the potential of DeFi protocols. This latest move will further cement Maker’s position as one of the leading DeFi projects, and is sure to attract further institutional investment.

The deployment of USDC on Yearn Finance is a major step forward for MakerDAO and the decentralized finance (DeFi) ecosystem as a whole. It is a clear sign that Maker is committed to finding innovative ways to maximize returns for its users, and will likely lead to further growth in the DeFi space.