MakerDAO Passed Proposal to Raise $DAI Saving Rate to as High as 8%

MakerDAO Passed Proposal to Raise $DAI Saving Rate to as High as 8%
Source: static.news.bitcoin.com

A proposal seeking to temporarily increase the interest rate granted to holders of stablecoin Dai was approved by the MakerDAO community on July 27, raising yields for tokenholders to as high as 8%.

The proposal introduced the Enhanced Dai Savings Rate (EDSR), a mechanism that temporarily increases the effective Dai Savings Rate (DSR) available to users. The enhanced mechanism will be determined by the DSR utilization and will be reduced over time as the DSR utilization goes up.

MakerDAO raised its DSR to 3.49% in June, hoping to make DAI more competitive. The effort, however, resulted in less than 7% of the total DAI supply deposited in the DSR.

“In practice though, DSR utilization is near 0, which gives us excessive margins and a huge windfall of surplus on top of what we would naturally be earning with the protocol at this size," reads the proposal. “The income we are currently earning is much greater in reality than what is even shown on e.g. makerburn."

 

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
Wall Street back-office giant DTCC mulls stablecoin integration: report Wall Street back-office giant DTCC mulls stablecoin integration: report
Crypto industry cheers progress in 'historic' stablecoin legislation as Senate advances GENIUS Act Crypto industry cheers progress in 'historic' stablecoin legislation as Senate advances GENIUS Act
Circle secures in-principle approval to operate as money services provider in Abu Dhabi Circle secures in-principle approval to operate as money services provider in Abu Dhabi
Mastercard moves to integrate stablecoins into global payments network Mastercard moves to integrate stablecoins into global payments network
Term Finance recovers $1 million of $1.6 million loss to oracle configuration error Term Finance recovers $1 million of $1.6 million loss to oracle configuration error
Latest News More More
2 Hours Ago Tether plans further Bitcoin mining expansion in South America with Adecoagro tie up
1 Day Ago North Korean hackers use fake Zoom updates to deliver ‘NimDoor’ macOS malware targeting crypto firms
1 Day Ago JPMorgan's blockchain unit tests new carbon credit tokenization application with S&P Global
4 Days Ago Ethereum community plans onchain ‘time capsule’ to mark 10th anniversary of network’s genesis block
June 25 Circle's post-IPO stock surge pushes market cap near Coinbase and USDC
delate
Use TokenInsight App All Crypto Insights Are In Your Hands
Open