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MakerDAO implements temporary fee increase to prepare for ‘potential Dai demand shock’

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MakerDAO implemented temporary changes to fees to strengthen its protocol as holdings of the dollar-pegged stablecoin dai decline due to a period of “increased volatility and bullish sentiment.”

This proposal follows Dai supply plummeting from $5 billion to $4.4 billion last week. According to the proposal, a member of BA Labs: maker MSEK

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Stability Advisory Committee. Dai remains overcollateralized, but some of that collateral is placed in real-world asset (RWA) vehicles, which could lead to a potential liquidity crisis if more Dai selling continues.

“Liquid stablecoin reserves and reserves deployed in RWA are sufficient to sustain the increasing pressure arising from potential bullish market sentiment,” the proposal reads. “The problem lies in the liquidity crisis inherent in exposure to stablecoins distributed through RWA.”

Changes have been approved which will take effect from tomorrow to stabilize the proposals., on March 10, includes increasing the Dai savings rate from 5% to 15% and increasing the core vault stability fee by approximately 9-10% respectively. Changes are also being implemented in Spark. die

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Effective borrowing APY and peg stability modules.

The changes are temporary, but there appears to be no automatic mechanism for returning fees. Blockchain research and development company GFX Labs claimed on the proposal’s talk page that the changes are “directionally correct”, but the company believes “…the scope of the move is quite large for a single task, leading to market confusion and confusion.” do.”


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