MakerDAO Relaunches DAI Savings Rate With Hiked Interest Rate

• Decentralized and tied to the US dollar, DAI is MakerDAO’s stablecoin.
• To raise the interest rate by 100 basis points was approved by a majority of voters.

MakerDAO is reintroducing the DAI Savings Rate. The DSR was first introduced in 2018, allowing participants to earn interest on their holdings of the project’s native stablecoin DAI by depositing it into a smart contract. However, for some time now, interest has been very low, paying consumers only 0.1%.

Moreover, decentralized and tied to the US dollar, DAI is MakerDAO’s stablecoin. It is backed by a mix of centralized and decentralized assets. Including Circle‘s USDC and cryptocurrencies like Ethereum and Wrapped Bitcoin. By market cap, it is the fourth biggest stablecoin.

Approved by Majority of Voters

Furthermore, the protocol interest rate has been increased to 1% after a decision by the executive board on December 11th, which was implemented on the blockchain today. MakerDAO ecosystem members might vote to keep the rate at 0.1 percent, increase it to 0.25%, or increase it to 1%.

The proposal to raise the interest rate by 100 basis points was approved by a majority of voters (71.25%). There were a total of 77,599 MKR tokens (MakerDAO’s governance token) cast in the election.

In addition to increasing the interest rate of the protocol, the vote also put into effect the launch of a new vault type to mint more DAI tokens using Gnosis (GNO) as collateral, the offboarding of the RENBTC vault type, and several changes to the parameters set by the MakerDAO Open Market Committee. The quantity of the debt that may be securely onboarded by each vault is the primary focus of the adjustments to the parameters.

Another 103,230 DAI will be distributed to twenty “recognized delegates” in the ecosystem for their participation in policymaking. Due to increased income from so-called real-world assets (RWAs), the protocol is able to significantly increase rates.

Recommended For You:

MakerDAO Community Divided Over Recent MIP Proposal