MakerDAO Set To Deposit $100M In Bespoke Yearn Vault

The MakerDAO community has greenlit a proposal to deposit $100M of USDC from its Peg Stability Module (PSM), which holds reserve assets backing the DAI stablecoin, into a tailor-made noncustodial Yearn vault.

The debt ceiling of the vault will be set at $100M, with an estimated yield of 2% APY.

Yearn, DeFi’s first major yield aggregator, initially proposed the partnership in November 2022, and it must now be confirmed through an executive vote.

“We’re really happy with the outcome. Maker has a lot of existing CeFi relationships, and we weren’t sure what the appetite for DeFi-native yield would be in this case. I’m expecting it to take a couple of months to get up and running,” Corn, who works on integrations at Yearn, told The Defiant.

Slew of Partnerships

MakerDAO aims to generate revenue from its $8B of reserves and has garnered substantial interest from both centralized and decentralized entities.

Last week, Paxos proposed to infuse MakerDAO’s PSM with $1.5B of USDP. If approved, the move could potentially generate $70M annually for Maker.

In September 2022, Coinbase proposed that MakerDAO deposit $1.6B in USDC from its PSM into Coinbase’s institutional platform, Coinbase Prime, for a yield of 1.5% APY.

That proposal was successfully passed the following month. Coinbase is part of the Centre consortium, which issues the fiat-backed USDC stablecoin.

In late 2022, MakerDAO unveiled plans to deploy $500M USDC from its PSM to purchase real-world assets such as US treasuries and corporate bonds.

MKR is up over 20% in the past month.