About 72.43% of the community votes opposed CoinShares’ proposal to invest MakerDAO funds in various traditional assets.
Decentralized lending protocol MakerDAO has voted against crypto investment firm CoinShares’ proposal to invest between $100 million and $500 million of community funds in a portfolio of corporate debt and government-backed bonds for yield as an investment strategy.
72.43% of the community votes were against CoinShares’ proposal to invest MakerDAO funds in various traditional assets. If the community had voted in favor of CoinShare’s proposal, the crypto investment firm would have provided “a variable APY above the SOFR interest rate (3.01% as of October 26, 2022) in the community’s preferred currency.” (DAI, USDC, USD…) to MakerDAO”, which could be withdrawn in jail.
At the MakerDAO community council, some members explained why they voted against the proposal. A community member with the username “Feedblack Loops LLC” shared:
“As the government voted for the excess USDC available at the time, I will just say no to such proposals moving forward until the house is in order. Coinshares had a lot of inconsistencies at first, but it did a decent job of articulating confusing parts of its proposal. Optimistic for a different review/approach.”
Another user named Llama, who also voted against the proposal, said: “We believe this proposal goes well beyond the risk tolerance of the protocol.”
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In October, the MakerDAO community approved custody of the $1.6 billion stablecoin Coin (USDC) with institutional cryptocurrency brokerage platform Coinbase Prime. The escrow was expected to allow the MakerDAO community to earn a 1.5% reward on USDC held with Coinbase Prime.