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According to the proposal submitted at the end of November, MakerDAO is predicted to earn a 2% annual yield with the strategy.
The maneuver is part of Maker’s strategy to earn a steady revenue stream by allocating a part of its $7 billion in reserve assets to various yield-generating strategies such as partnering with crypto exchange Coinbase’s (COIN) custody platform and investing in U.S. government bonds. DAI holders are receiving a 1% annual reward as a result of increased income since last month.
The move may also boost Yearn’s dwindling user activity. The protocol’s total value locked, a popular indicator to show the worth of assets deployed on a DeFi protocol, has dropped to $442 million from an all-time high of $6.9 billion in December 2021, according to data from DefiLlama.
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