​Gemini wants to boost GUSD stablecoin volume in MakerDAO Gem | Altcoin Holder

​Gemini wants to boost GUSD stablecoin volume in MakerDAO

Gemini has submitted a proposal on the MakerDAO forum to boost the adoption of the Gemini dollar (GUSD) stablecoin in the latter’s ecosystem by paying a fixed yield on the GUSD balance in MakerDAO’s vaults.

Gemini co-founder Tyler Winklevoss submitted the proposal on Thursday, detailing a three-month marketing incentive plan.

The proposal seeks to grow the volume of the GUSD balance in the MakerDAO PSM, which is currently at about $24 million based on this Dune Analytics dashboard. PSM refers to the peg stability module that allows users to mint DAI by swapping any MakerDAO-accepted collateral. The PSM is also useful for maintaining DAI’s peg to the U.S. dollar.

As part of the scheme, the proposal states that Gemini will pay a fixed annual interest of 1.25% on the total GUSD in the PSM vault. The annualized fixed rate will be evaluated and paid on a monthly basis. A condition of the payment is that the average GUSD balance in the vault is more than $100 million on the last day of the month. The GUSD volume in the vault rising to $100 million means that users are depositing GUSD to mint DAI.

The proposal stated that Gemini will credit MakerDAO in GUSD once every month for a three-month period. This incentive will require Maker to create a new entity that will be issued an account with Gemini to receive the payments. The Maker entity will also have to go through know-your-customer verification processes. MakerDAO’s governance can also choose to move the funds from this entity to its treasury.