Makerdao Considers Significant DAI Savings Rate Hike: 3.3% on the Horizon, If Vote Passes
The Makerdao collective is currently immersed in a discussion about the potential rise of the DAI stablecoin’s savings rate to 3.3%. This suggestion was introduced by Block Analitica and revealed to the community on May 26 under the title “Stability Scope Parameter Changes #2.”
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Block Analitica Proposes Raising DSR to 3.3%
Risk and intelligence firm Block Analitica has recommended boosting Makerdao’s DAI Savings Rate (DSR) to 3.3%, as per a recent proposal submitted on Friday. Makerdao’s DSR is a function that enables users to accrue interest on their DAI holdings by securing their DAI within DSR smart contracts.
“Brace yourself, DAI holders, for a DSR at 3.33%,” declared Makerdao’s official Twitter account. “An upcoming Executive Vote will deploy a new DSR raise, from 1% to 3.33%, if approved. This change was put forth by [Block Analitica] and submitted via the latest Stability Scope Parameter Changes,” the Makerdao team further elaborated.
At present, DAI ranks as the fourth-largest stablecoin asset by market capitalization, and it is supported by a substantial quantity of centralized stablecoins. Data on May 27, 2023, reveals that more than 24% of the collateral underpinning DAI consists of USDC, 10.4% comes from GUSD, and another 10.4% is comprised of USDP.
Only 11.5% is backed by ethereum (ETH), and an additional 8.5% is collateralized by Lido’s staked ether (STETH). Over the past month, DAI’s supply has diminished by 3.5%, and since February 2022, its market capitalization has decreased from $9.8 billion to its current value of $4.61 billion. The proposition to augment the DSR would yield a considerably higher interest rate than today’s 1%.
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The first escalation to 1% commenced last year, followed by a notable surge in DAI DSR deposit activity and engagement from Olympus DAO this year. A similar upswing in action could transpire if the community advances the proposal to an approval status through a Makerdao vote.
Do you think the proposed DAI savings rate hike by Makerdao could ignite a surge in activity? Share your thoughts and opinions in the comments section below.
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