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title: MIP86 Summary
tags: [Summaries]

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tags: Summaries
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# MIP86 Summary

## Summary
This is a summary of the contents of this proposal and its impact, from GovAlpha’s perspective:

- This is a proposal for CoinShares to invest up to 500M USDC from MakerDAO’s USDC PSM into various government and corporate bonds in line with [MIP13c3-SP12](https://mips.makerdao.com/mips/details/MIP13c3SP12).
- The precise amount of USDC to be invested will be determined by a Signal Request if the MIP is approved.
- If the portfolio outperforms the Secured Overnight Financing Rate (SOFR), then CoinShares will pay MakerDAO this interest rate every month on chain.
- Any profits above the SOFR will be divided as follows: 1/3 for MakerDAO, 1/3 for CoinShares, and the last 1/3 for CoinShares to acquire MKR. The acquired MKR will be held for at least two years by CoinShares.
- If directed to do so by an Executive Vote, CoinShares aims to be able to unwind the investment within seven business days under normal market circumstances. Under stressed market conditions, withdrawal may take longer and may generate losses for MakerDAO.
- MIP86-c6, c7, c8, and c9 detail the legal and custodial solutions proposed for the USDC assets and bond assets.
- An illustration of the flow of funds from PSM to investment is provided within the MIP.
- CoinShares is regulated in Jersey by the Jersey Financial Services Commission and the agreement would be governed under Jersey or United Kingdom laws.
- This proposal has been assigned `High-Impact` based on the methodology listed [here](https://forum.makerdao.com/t/introducing-impact-estimations/14267).

***Disclaimer: These summaries are intended to be a guide and not a source of truth. You remain responsible for any actions you take on the grounds of this information. Please note the date when the summary was last updated to judge accuracy.***

*Updated 2022-11-08*