Institutions, fond of MakerDAO – MakerDAO is the protocol behind the DAI stablecoin on Ethereum. Despite its status as a decentralized finance protocol, MakerDAO multiplies partnerships with institutions. Latest news: the governance of the protocol has just accepted a surprising alliance with the giant Coinbase.
MakerDAO rolls out the red carpet for Coinbase
Coinbase is the reference platform for buying and selling cryptocurrencies. With its history and reputation, Coinbase is often the first intermediary for new investors looking to buy cryptocurrencies. In addition to its exchange, Coinbase offers various services, such as lending.
In a blog post published on October 24, Coinbase announced a partnership surprising with the protocol MakerDAO. Indeed, on October 10, the Coinbase platform published a governance proposal on the MakerDAO module.
Through this proposal, Coinbase submitted the idea that MakerDAO deposit part of USDC held by protocol in the programme Coinbase Prime. The objective is to allow income to be generated on the funds that sleep on the protocol.
« MIP81 [la proposition] onboards a portion of USDC from PSM to Coinbase Prime in order to participate in Coinbase’s USDC institutional rewards program. »
Coinbase proposal
Eventually, after deliberation, Coinbase’s proposal was accepted with 75 % votes in favor of « Oui ».
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Guaranteed return for MakerDAO, but questionable decentralization
In total, more than1.6 billion dollars in USDC from MakerDAO will be deposited into the Coinbase Prime program. In practice, these funds will generate a yield about 1.5% annualized, as explained by Coinbase in its announcement:
“MakerDAO will earn a 1.5% reward on its USDC, all while holding funds with a top-tier institutional custodian. These funds will be kept safe and accessible 24/7/365 at the DAO stability module. »
However, several problems can be identified with the decentralization. At first, the vote was led by several large wallets. Unsurprisingly, the latter account for most of the voting power deployed. Indeed, the most important voter represents 27% of the votes.
Moreover, this decision is extremely surprising in the current context. Indeed, more and more voices are raised on Ethereum in the face of the risks of censorship.
In parallel with the Tornado Cash case, the centralized stablecoinslike the USDC, have many times been finger pointing. Furthermore, the MakerDAO protocol and its stablecoin DAI are extremely dependent on these centralized stablecoins. While part of the community would like to see the protocol distance itself from these stablecoins, it continues to strengthen its ties.
However, last August, the founder of MakerDAO had presented a plan for decentralization. This same plan aimed to reduce the protocol’s reliance on centralized stablecoins. A plan which, it seems, has since fallen into oblivion.
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