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.”
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%.
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.
Altcoins, Block Analitica, collateral, DAI, DAO governance, DSR, DSR activity, DSR Deposits, Executive Vote, Governance, Interest, makerdao, Makerdao DAI, Makerdao vote, Market Capitalization, Olympus DAO, proposal, savings rate, StablecoinRead More