Rune Christensen, the founder of MakerDAO, suggests reducing the maximum Enhanced DAI Savings Rate (EDSR) from 8% to 5%; expanding the usage range of EDSR; raising the borrowing rate to match the EDSR to end arbitrage opportunities (initially reaching a minimum of 5%); and establishing a retrospective airdrop for Spark Protocol borrowers.
Currently, the DAI borrowing rate is only 3.19%, lower than the 8% DAI savings rate, resulting in whales using a significant amount of ETH as collateral to borrow DAI, deposit it into DAI savings, and engage in arbitrage.
Rune Christensen stated that within 48 hours of the launch of EDSR, the Dai supply increased by nearly 500 million, and the utilization of the DSR (Deposit Savings Rate) has almost reached the 20% threshold. Large-scale ETH and staked ETH whales have gained profits through borrowing from EDSR, displacing the ordinary Dai users who should have been the main beneficiaries of EDSR.
According to the utilization range shown in the chart below, if the utilization exceeds 20%, the DAI savings rate will begin to decrease. Rune proposes a uniform savings rate of 5% for the utilization range of 0%-40%.
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