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# System prepended metadata

title: 'MIP81: Coinbase USDC Institutional Rewards'
tags: [Summaries]

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tags: Summaries
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# 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*