- Crypto Exchange Coinbase Looking to acquire 1.6 Billion USD of Maker DAO’s USDC
- The Proposal from Coinbase will enable Maker to Mint Free, Burn, Withdraw, and Settle Funds
The crypto exchange Coinbase is looking to transfer 1.6 Billion USD MakerDAO’s in return for increasing the latter’s revenue by rough;y 24 Million USD. The decided amount holds approximately 33 percent of MakerDAO’s stability: ‘Peg Stability Module’. Coinbase is requesting Maker to transfer the finalized amount in a Prime custody account.
This seems like the crypto exchange is trying their best to get over the losses. According to recent instances, it is clear that the company has incurred heavy financial losses and operational snags.
Who is Maker DAO? Maker DAO is the creator of the Ethereum based Dai stablecoin. The platform offers a window to the depositors to earn interest on DAI when they deposit it to the Maker’s Bank. The Peg Stability Module allows the users to easily swap between the given collateral type directly for DAI at a fixed rate, rather than borrowing DAI.
Maker’s DAO current Peg Stability Module is used to check if it is “highly underinvested”. This may turn out to be a blunder reducing DAI’s attractiveness as a stablecoin in the crypto market.
The deal will not just profit the crypto exchange Coinbase, but it will also help Maker. Once the deal is finalized, Maker will pay no fees on its PSM deposit to Coinbase. This will enable Them to mint free, burn, withdrawal funds and settlement of its allocated USD through Coinbase Prime accounts.
Source: https://www.thecoinrepublic.com/2022/09/08/coinbase-proposes-makerdao-to-acquire-1-6-billion-usdc/