Coinbase Takes Action To Increase Revenues Of This Altcoin!

Coinbase has released a board recommendation that could increase MakerDAO revenue by $24 million.

Revenue Increasing Strategic Move From American Cryptocurrency Giant Coinbase

Company officials, who submitted a proposal to MakerDAO’s board of directors today, aim to increase revenue of approximately $24 million by transferring 33% of the Maker Peg Stability Module (PSM), which is worth approximately $1.6 billion, to the Prime custody account.

If the proposal is accepted, it will give MakerDAO an annual return of 1.5% over 528 million USDC.

MakerDAO’s PSM, of DAI It was developed to fix the price of 1 dollar and the protocol was implemented after the price went above 1 dollar during the Covid 19 collapse in 2020.

This is because during the collapse of ETH It was the growing demand to cover the loan liquidations caused by the drop of more than 40%.

While PSM was effective in maintaining the constant value of DAI, one of the main problems identified on the platform by a member using the advc alias in the strategic financial center unit was balance sheet issues.

Using the pseudonym adcv on this issue, the member wrote that MakerDAO’s current PSM asset allocation is “pretty poor”, which “reduces the risk-taking capability of the protocol and the attractiveness of DAI as a stablecoin.”

If the offer is accepted, Maker will pay zero custody fees for PSM distribution to Coinbase and will be able to freely print, burn, withdraw and trade the USDC allocated to it through Coinbase Prime.

The proposal is seen as a strategic move to generate revenue from unused assets on MakerDAO’s balance sheet.

*Not investment advice.