--- tags: Summaries --- # MIP81: Coinbase USDC Institutional Rewards This is a summary of the subproposal and its effects upon ratification from GovAlpha's perspective: - This is a valid proposal, eligible to enter the October Governance Cycle. - This MIP takes on MakerDAO's intent to invest in short-term bonds, as formally expressed through [MIP13c3-SP12: Invest in Short-term Bonds](https://mips.makerdao.com/mips/details/MIP13c3SP12). - This proposal aims to use 1/3 of the USDC in the PSM to get Institutional Rewards in Coinbase Prime with up to 1.5% APY on USDC. - Maker will pay no custody fees on USDC held with Coinbase Prime. - An arranger selected by SF-001 will act as a permissioned actor on MakerDAO's Coinbase Prime account. The arranger will be responsible for ensuring all standard KYC and AML due diligence requirements; furthermore, they will be authorized to deposit and withdraw assets between the PSM and Coinbase so long as they’re successfully onboarded and authenticated. - USDC Institutional Rewards POC will be in effect until the end of 2022, and the final payment will be made in the subsequent month. - Maker Governance has the complete ability to trigger a liquidation with a successful executive vote encoding an instruction to the authorized account users of the legal entity. - This proposal has been assigned `High-Impact` based on the methodology listed [here](https://forum.makerdao.com/t/introducing-impact-estimations/14267). - This MIP is eligible to enter the October [Governance Cycle](https://mips.makerdao.com/mips/details/MIP3#MIP3c2). *Updated 2022-09-30*