Maker Direct Deposit Module to Integrate with Compound

Maker announced its $DAI Direct Deposit Module (D3M) is integrating with lending protocol Compound. The target borrow rate is 2%, and the debt ceiling is 5M $DAI.

The D3M is a wholesale credit facility that automatically mints and deposits $DAI into Compound. When the demand for borrowing $DAI changes in Compound, the D3M adjusts the supply to stabilize the $DAI borrow rate at 2%.

When the D3M deposits $DAI into Compound, it receives $cDAI in exchange, which is Compound's interest-bearing token that allows Maker to earn interest against its deposited $DAI.