MakerDAO Proposes USDC Move to Boost Yield, Despite Whale Exit

– MakerDAO recently proposed to onboard $100 million worth of USDC into a iearnfinance on-chain vault, with the intention of earning a 2% annual yield.
– Stablecoins make up the majority of MakerDAO’s assets, with real-world assets (RWA) contributing 56.9% of the overall revenue generated by MakerDAO.
– Unique users on MakerDAO have declined, and whales have started to lose interest in the MKR token.

The MakerDAO protocol recently proposed to onboard $100 million worth of USDC into a iearnfinance on-chain vault in order to earn a 2% annual yield. This move was considered a notable decision due to the current asset distribution of MakerDAO. According to data provided by Dune Analytics, stablecoins make up 70.7% of the overall number of assets being held by MakerDAO, with Ethereum making up 15% and real-world assets (RWA) making up 12% of the overall assets. Despite being a relatively small percentage of the overall assets, RWA have been a significant contributor to the overall revenue generated by MakerDAO. During press time, RWA was responsible for 56.9% of the overall revenue generated by MakerDAO.

Unfortunately, this proposal has not been met with great enthusiasm. According to Messari, the number of unique users using the MakerDAO protocol declined by 23.16% over the last month. This lack of interest from users has also been reflected in the state of the MKR token. According to data provided by Santiment, the percentage of MKR being held by large addresses declined, suggesting that whales have started to lose interest in the MKR token.

Despite this lack of enthusiasm, MakerDAO remains confident that the USDC move will be beneficial for the protocol. The team believes that the iearnfinance on-chain vault will provide a secure and reliable way for MakerDAO to earn a stable return on its assets. Moreover, the team also believes that this move will help the protocol to remain competitive in the crypto lending space, as other protocols are also now offering yield-bearing strategies.

Ultimately, whether or not this move will be beneficial for MakerDAO remains to be seen. However, it is clear that the protocol is looking to innovate and take advantage of new opportunities to increase its revenue. Despite the recent decline in users, MakerDAO remains confident that the USDC move will be beneficial for the protocol in the long-term.