On the MakerDAO governance forum, Coinbase posted a proposal to move 33% of Maker’s $1.6 billion Peg Stability Module (PSM) into a Coinbase Prime custody account, boosting Maker’s revenue by almost $24 million. If approved, the proposal would give Maker a $528 million USDC annual dividend of 1.5 percent. Maker’s $1.6 Billion Peg Stability Module (PSM) After the Covid crash in 2020, when the protocol saw the peg move above $1, Maker’s PSM was developed to hard-peg the price of DAI to $1. Because ETH fell by more than 40% during the meltdown, there was an increase in demand to pay off debt liquidations. Although PSM has been successful in keeping DAI’s peg, one of the critical problems mentioned on the forum by adcv, a member of Maker’s strategic finance core team, is Maker’s capacity to invest its balance sheet properly. Adcv wrote, Maker’s current PSM asset allocation is “highly underinvested,” which “reduces the protocol’s ability to take the risk and its attractiveness as a stablecoin,” USDC Using Coinbase Prime If the proposal is approved, Maker can freely mint, burn, withdraw, and settle its assigned USDC using Coinbase Prime and pay no custody costs on its PSM allotment to Coinbase. This idea is a tactical action that will bring money into MakerDAO’s balance sheet from idle assets.The post Coinbase Plans to Transfer Maker’s $1.6B Peg Stability Module (PSM) appeared first on Cryptoknowmics-Crypto News and Media Platform.
Pi Coin Price Prediction For March 10
