• MakerDAO, the issuer of the Ethereum-based stablecoin, DAI, has approved a proposal to deploy $100 million of Circle’s USDC in a Yearn Finance yield-generating account called a „vault.“
• The proposal aims to look for a way MakerDAO could split its treasury allocations and earn yield, with a total of 95,666.284 of Maker’s native token, MKR cast in the vote.
• With the approval of the MIP92, MakerDAO plans to begin depositing $100 million USDC to the Yearn finance vault to earn a 2% yield annually, approximately $2 million every year.

MakerDAO, the issuer of the Ethereum-based stablecoin, DAI, has recently approved a proposal to deploy $100 million of Circle’s USDC in a Yearn Finance yield-generating account called a „vault.“ The proposal, submitted on January 9, was intended to seek out a way MakerDAO could split its treasury allocations and earn yield.

In order to make a decision, 95,666.284 of Maker’s native token, MKR was cast in the vote. Of the total votes, approximately 68,462 MKR, which accounts for 71.56%, voted in favor of deploying USDC in Yearn Finance, while 27,204 MKR, which accounts for 28.44% voted out the whole idea and 0.0% voted „abstain.“

Following the approval of the MIP92 (Maker Improvement Proposal 92), MakerDAO now plans to begin depositing $100 million USDC to the Yearn finance vault. This move is expected to earn a yield of 2% annually, approximately $2 million every year on its YearnFi investment.

Yearn finance is a yield aggregator built on the Ethereum blockchain, allowing users to deposit crypto assets in the service in exchange for yield or interest over some time. Founded by prominent DeFi developer Andre Cronje, the platform has seen a surge in users and assets over the last few months.

The decision to deploy USDC in Yearn Finance is yet another example of MakerDAO’s commitment to diversifying their treasury allocations and generating yield. Prior to the MIP92 submission, MakerDAO had already demonstrated interest in Circle’s dollar-backed stablecoin and had formally requested the issuance of a new Coinlist Token in the form of USDC.

The proposal is now awaiting an executive vote for the concept to be implemented. If successful, MakerDAO’s decision to deploy USDC in Yearn Finance will be a major step forward for the platform and could serve as a model for other DeFi projects looking to generate yield.