MakerDAO Vote Favors Retaining GUSD Exposure in DAO’s Reserves

• MakerDAO is in the middle of a governance vote to decide the fate of the GUSD stablecoin.
• The proposal suggests MakerDAO currently enjoys $7.3 million of annual revenues from its $500 million exposure to Gemini’s GUSD.
• Early voting numbers suggest MakerDAO will retain its exposure to GUSD with more than 77% of the votes cast in favor of retaining GUSD in the DAO’s reserves.

MakerDAO, the leading DeFi platform, is in the middle of a governance vote that will decide the fate of the GUSD stablecoin. This vote was prompted by recent controversies surrounding Gemini and its financial health. If the vote is successful, MakerDAO would retain its exposure to GUSD, while if it fails, they could potentially reduce the exposure to $100 million or even eliminate it from their reserves altogether.

According to the proposal, MakerDAO currently enjoys $7.3 million of annual revenues from its $500 million exposure to Gemini’s GUSD. This revenue comes from a marketing incentive of 1.5% that Gemini pays to the lending platform for maintaining more than $100 million of GUSD. This incentive has allowed the DeFi platform to enjoy more revenues than what it would have made without the exposure.

The ongoing vote will decide if the exposure is to be maintained at $500 million or should be decreased to $100 million. A third option of eliminating all GUSD reserves has also been proposed. Interestingly, early voting numbers are suggesting that MakerDAO will retain its exposure to GUSD after all. Community members have shown confidence in Gemini’s ability to weather their financial troubles. According to the voting stats, more than 77% of the votes have been cast in favor of retaining GUSD in the DAO’s reserves. No votes were cast in favor of reducing the exposure to $100 million, while 22% of the votes were in favor of eliminating the stablecoin from their reserves.

The vote is slated to close on June 14, 2021, and the results of the vote will be made public once the voting closes. If the results of the vote are in favor of retaining GUSD in the DAO’s reserves, MakerDAO will continue to enjoy the revenue from the 1.5% incentive from Gemini. On the other hand, if the vote fails, MakerDAO may have to reduce its exposure to GUSD or even eliminate it from its reserves altogether.

Whatever the outcome of the vote, it will be an important milestone in the DeFi space, as MakerDAO’s decision will have a lasting impact on the industry. It remains to be seen how the vote will shape the future of MakerDAO and DeFi as a whole.