MakerDAO proposal seeks to hike DAI savings rate to 333

Published: 2023-05-27


1. The MakerDAO Community Considers an Increase to Dai's Savings rate Recently,the MakerDAO community proposed an increase in Dai's savings interest rates to 3.33%. This comes after a turbulent year for the decentralized finance (DeFi) space,which saw Dai's saving rate drop to zero in 2020 due to the COVID-19 pandemic's economic impact. However,it is important to note that the current proposed increase is still only halfway to Dai's pre-pandemic savings rate of 8.75%.

2. Factors Behind the Proposed Dai Savings Rate Increase One factor behind the proposed Dai savings rate increase is the rise in Ether prices,which MakerDAO uses as collateral. Ether prices have surged to an all-time high of $2,500,leading to improved stability on the Dai platform. With increased stability,increasing Dai's savings rate to 3.33% is expected to increase demand for the stablecoin.

3. The Impact of the Proposed Dai Savings Rate Increase If the proposal passes,Dai will become a more attractive option for investors looking to earn returns on their savings. The increase in the savings rate may lead to a surge in Dai demand,which could result in increased value for the platform's native token,MKR. Additionally,the proposed increase in savings rates is indicative of MakerDAO's commitment to ensuring its platform remains competitive in the rapidly growing DeFi space.


Reference: cointelegraph.com