Founder of MakerDAO Proposes to Lower $DAI Savings Rate to 5% and Expand Utilization Range

Founder of MakerDAO Proposes to Lower $DAI Savings Rate to 5% and Expand Utilization Range
Source: coincu

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%.

 

TokenInsight is dedicated to covering the most important and cutting-edge trends in the world of crypto. If you have information to share with us, please feel free to contact our email news@tokeninsight.com. Your trust will be well respected.

Source

Stablecoins

DeFi

In This Article

Related News
Total stablecoin market cap tops $200 billion as onchain lending yields surge Total stablecoin market cap tops $200 billion as onchain lending yields surge
Bernstein names Robinhood as top 'crypto deregulation trade,' raises price target to $51 Bernstein names Robinhood as top 'crypto deregulation trade,' raises price target to $51
Radiant Capital hacker moves $52M in stolen funds Radiant Capital hacker moves $52M in stolen funds
Tesla likely still owns $780M in Bitcoin despite recent shuffle: Arkham Tesla likely still owns $780M in Bitcoin despite recent shuffle: Arkham
Stacks (STX) makes 30% gain as mainnet upgrade and stablecoin launch approach Stacks (STX) makes 30% gain as mainnet upgrade and stablecoin launch approach
Latest News More More
18 Hours Ago Mantra and Damac sign $1B deal to tokenize Middle Eastern assets
18 Hours Ago Fetch.ai launches $10M accelerator for AI agent startups
1 Day Ago Fidelity’s spot bitcoin, ether ETFs post largest daily net outflows since inception
1 Day Ago Polkadot-based Phala Network launches Ethereum Layer 2 rollup
2 Days Ago Coinbase premium flips positive for first time in weeks, indicating rising bitcoin demand from US investors
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open