One of the largest decentralized crypto lenders, MakerDAO (MKR), has rejected the proposal put up by crypto investment firm CoinShares to invest up to $500 million of its USDC reserve in corporate debt securities and government-backed bonds.
Almost 73% of all voters voted against the proposal that offered to invest from $100 to $500 million in traditional financial assets with a variable APY above the SOFR interest rate, which was 3.01% as of October 26. 13.84% voted in favor and 13.73% abstained.
MakerDAO has already invested hundreds of millions of dollars of its $7.7 billion Peg Stability Module (PSM) reserve in traditional instruments in an attempt to generate more revenue. In October, the DAO voted in favor of investing $500 million in short-term US treasuries and corporate bonds with an expected 4.5% to 6% annual yield.
Less than a month later, MakerDAO voted in favor of moving $1.6 billion of its reserve denominated in USDC to Coinbase Prime, a custody program that will allow the protocol to earn 1.5% of additional yield.
MakerDAO is also currently voting on increasing the annual reward for its flagship stablecoin DAI to up to 1% from the current 0.01%. So far, almost 68% have voted to…
