MakerDAO Votes in Favor of YFI Yield Proposal, TVL Up 20.42%

• MakerDAO voted in favor of a 2% extra yield income from Yearn Finance.
• Maker Governance is voting to approve or reject the offboarding of the USDC-A, USDP-A, and GUSD-A vault types.
• MakerDAO’s Total Value Locked (TVL) increased by 20.42%, despite remaining second in the DeFi TVL standings.

The MakerDAO community recently voted in favor of a proposal to deploy $100 USD Coin [USDC] into the Yearn Finance [YFI] DeFi protocol, which would result in a 2% extra yield income for MakerDAO. This vote was met with much enthusiasm from the MakerDAO community, as 71.56% of the MKR community voted in favor of the proposition.

The proposal was centered around a DeFi strategy to help Maker earn an annual 2% yield, which would also help with PSM USDC reserves and transfer. MakerDAO noted that the approval meant that it added another means to generate income and add to its reserves.

Despite the compliance, Maker remained second in the DeFi Total Value Locked (TVL) standings, with Lido Finance [LDO] taking the pole position. However, MakerDAO’s TVL had still increased a whopping 20.42%, according to DeFi Llama’s data. This increase in TVL meant that more investors have shown interest in the dApps under the Maker network.

At press time, the MakerDAO TVL was $7.5 billion, although this was still massively down from its 2022 All-Time High (ATH). On 23 January, MakerDAO’s governance arm put out another offer for voting, regarding the offboarding of USDC-A, USDP-A, and GUSD-A vault types. If you are a USDC-A, USDP-A, or GUSD-A vault owner, you are strongly encouraged to read up on the implications of this offboarding process.

Overall, the MakerDAO community’s vote in favor of the Yearn to earn Yield proposal is a positive signal for the DeFi space. It shows that investors are still confident in the Maker protocol and its ability to generate income. As MakerDAO continues to develop its network and increase its TVL, it could potentially regain its ATH status in the DeFi space.