MakerDAO, the entity responsible for the development of the MKR token, has announced plans to strengthen its protocol as increased market volatility and bullish sentiment have led to a decline in the reserves of its stablecoin Dai (DAI). Passed a new board vote implementing temporary fee adjustments. .
The proposal comes after Dai’s supply rapidly declined from $5 billion to $4.4 billion in the last week, as outlined in the article. suggestion From BA Labs, a member of the Maker’s Stability Advisory Council.
Within this proposal, MakerDAO will expedite the approval process for stablecoin stability measures if users choose to redeem a portion of the $1.1 billion in real world assets (RWA) available on the protocol. It is planned to become Even though Dai is overcollateralized, using RWA vehicles as collateral may create liquidity issues if Dai sales continue.
The proposal states:
“Liquid stablecoin reserves and the reserves deployed in RWA are more than sufficient to sustain the increasing pressure caused by potentially bullish market sentiment. liquidity crunch inherent in exposure to stablecoins.
Although the Maker DAO ecosystem is currently stable, we believe it is necessary to anticipate potentially unpredictable user actions. Proposed measures include changes to suspension delays for Maker Vaults, SparkLend DAI borrowing rates, PSM, Dai Savings Rate (DSR), and Governance Security Module (GSM).
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This adjustment includes increasing the stability fee from 15% to 17.25% on various collateral assets registered on the platform. Additionally, we plan to increase SparkLend DAI Borrow APY from the current 6.7% to 16%.What are the planned changes? approved Effective tomorrow, March 10, 2024 at 19:55 UTC.
Manufacturer DAO will also make a PSM adjustment that will reduce the cooldown on debt ceiling increases from 24 hours to 12 hours. Other measures implemented include increasing the Dai savings rate to 15% and increasing the GSM suspension delay from 48 hours to 16 hours to ensure future adjustments are implemented more quickly.
Although these adjustments are temporary, there is no automatic process to reverse the charges. GFX Labs, a blockchain research and development company, stated on the proposal’s discussion page that the changes are in the right direction, but expressed concerns about their scale, fearing potential market disruption and disruption.
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