MakerDAO is voting on increasing yield for the dai stablecoin

MakerDAO's governance forum is voting on increasing the dai (DAI) savings rate (DSR), which is the rate of interest the protocol pays to dai stakers.

The DAO members are voting on whether to increase the current yield rate of 0.01% to one of four rates — 1%, 0.75%, 0.5% and 0.25% — according to a proposal made by the MakerDAO Open Market Committee. 

Voters can also vote to keep the current yield of 0.01% or abstain from the proposal altogether. At the time of publication, 99.7% votes were in favor of raising the rate to 1%, though the outcome could change as more votes come in. The vote is expected to finish on Dec. 1. 

The committee said it made the proposal to update dai staking yields to be on par with stablecoin yields offered by other decentralized finance (DeFi) protocols like lending protocol Aave and Compound. A higher savings rate would also help ensure there’s enough liquidity to maintain the stability of the dai stablecoin, it noted in the proposal.

Average asset supply rates on DeFi lenders have increased slightly over the past month, according to data from Block Analitica. The committee attributed this spike of supply rates on lending protocols to a drop in asset liquidity caused by investors flocking toward more attractive and safer yields paid by US Treasury bills. For example, 1-year U.S. treasury bills are paying a 4.7% rate at the moment.