Nov 29, 2022 Frank Stewskid
Following a two-week voting period, MakerDAO’s community voted against a proposal to let CoinShares manage a portion between $100 million and $500 million of the community’s funds. The proposal promised returns over the SOFR interest rate, set around 3.01%, denominated in the community’s preferred cryptocurrency and withdrawable on-chain.
Despite the lucrative deal, at the end of the voting period, the results were 72.43% against the proposal. Some MakerDAO users who voted against the offer expressed concerns that it is “extremely beyond protocol risk tolerance”, while others stated that they are open to CoinShares submitting a revised proposal.
Earlier this year, in October, the MakerDAO community members voted in favor of allocating $1.6 billion worth of USDC, around 33% of its USDC holdings, to Coinbase Prime in return for a 1% APY on the first 100 million USDC, 0.1% more APY on each 100 million USDC after that, while also not exceeding 1.5% APY. Nevertheless, MakerDAO’s revenue for Q3 2022 dropped due to a decrease in loan demands and a couple of large liquidations.