MakerDAO implements temporary fee hikes to prepare for 'potential Dai demand shock'
MakerDAO, in an accelerated governance proposal, has implemented temporary fee changes to the Maker Protocol in order to shore up support for the Dai stablecoin amid market volatility. The Dai saving rate has been increased from 5% to 15%, among other changes, as Maker attempts to alleviate sell pressure of the dollar-pegged stablecoin.
The proposal was prompted by a sudden drop in dai supply from $5 billion to $4.4 billion over the past week, according to the proposal, which was submitted by BA Labs, a member of Maker MKR +16.05% 's Stability Advisory Council. While dai remains over-collateralized, since some of that collateral is placed in real-world asset (RWA) vehicles, a potential liquidity crunch could result if more dai selling continues.
"Liquid stablecoin reserves and reserves deployed to RWAs are more than sufficient to sustain the increasing pressure generated by the potential bullish market sentiment," the proposal reads . "The issue lies in the liquidity crunch inherent in the exposure towards stablecoins deployed through RWAs."
In order to stabilize the proposal, a slate of changes were approved that will go into effect tomorrow , March 10th, including increasing the dai savings rate from 5% to 15% and increasing the stability fees of its core vaults around 9-10% each. Changes will also be implemented for the Spark Effective Borrow APY and the Peg Stability Module.
While the changes are meant to be temporary, there appears to be no automatic mechanism for the reversion of the fees. GFX Labs, a blockchain research and development company, argued on the proposal's discussion page that the changes were "directionally correct," but also that the company "...thinks the extent of the moves is quite large for a single action, and could result in dislocations and disruption in the markets."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Pump.fun Sparks a Live Token Launch Craze: A Quick Look at the Four Hottest Projects Right Now
There are only three projects with a market cap exceeding 10 million USD, suggesting that the "live streaming boom" may still be in its early stages.

GaiAI announces upcoming testnet launch: Creating a new paradigm for Web3 visual creative assets
GaiAI is committed to integrating AI generation with blockchain-based copyright confirmation through decentralized mechanisms, reshaping the production relationships and value flow in visual creation.

GaiAI: The world's first Web3 creative AI Agent and on-chain creative asset DAO will launch its testnet and start an airdrop on September 17.
GaiAI is the world’s first Web3 creative AI Agent and on-chain creative asset DAO, integrating generative AI with blockchain-based rights confirmation to reconstruct the production relationships and value flows in visual creation. Summary generated by Mars AI This summary was generated by the Mars AI model, and its accuracy and completeness are still being iteratively updated.

Super-Gamification Trend Series: Is Trading Card RWA a Good Business?
This article explores the seemingly “on-chain” appearance of the TCG (Trading Card Game) RWA market, revealing its true growth engine—“Hypergamblification.”

Trending news
MoreCrypto prices
More








