- GUSD is Gemini’s stablecoin
- And MakerDAO owns 88% of their total turnover
The MakerDAO platform may soon retire $390 million in GUSD stablecoin reserves. A community vote is now ongoing on this issue. 94% of participants support the idea. But in January there were already votes on this issue. Then, at the last moment, there was an influx of large holders who voted in favor of maintaining GUSD. As a result, with a result of 50.85%, the Gemini stablecoin remained as a reserve in the protocol.
MakerDAO’s decision is essential to the stability of GUSD. The fact is that the project owns approximately 88% of the total turnover of this stablecoin. Their reserves include assets worth $568 billion.
MakerDAO uses different cryptocurrencies to maintain the DAI rate. They have accumulated reserves totaling $4.5 billion. This includes various assets, including USDC and GUSD. Recently, the MakerDAO community has been reducing its stake in cryptocurrencies and converting reserves into real assets, such as US government bonds.
As we have already said, the issuer of GUSD is the Gemini crypto exchange. For using her stablecoin as a reserve, she pays MakerDAO an annual reward of 2%.
The reason for the rejection of GUSD is stated in the voting proposal. Participants believe that MakerDAO will have more opportunities to generate profits if it invests reserves in short-term treasury bonds. Their yield is now around 5%.