<p><span style="font-weight: 400;">MakerDAO's governance forum is</span> <a href="https://vote.makerdao.com/polling/QmV3oNeX#vote-breakdown"><span style="font-weight: 400;">voting</span></a><span style="font-weight: 400;"> on increasing the dai (DAI) savings rate (DSR), which is the rate of interest the protocol pays to dai stakers.</span></p> <p><span style="font-weight: 400;">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</span> <a href="https://forum.makerdao.com/t/parameter-changes-proposal-ppg-omc-001-24-november-2022/18925"><span style="font-weight: 400;">proposal</span></a><span style="font-weight: 400;"> made by the MakerDAO Open Market Committee. </span></p> <p><span style="font-weight: 400;">Voters can also vote to keep the current yield of 0.01% or abstain from the proposal altogether. At the time of publication,</span> <a href="https://vote.makerdao.com/polling/QmV3oNeX#vote-breakdown"><span style="font-weight: 400;">99.7% votes</span></a><span style="font-weight: 400;"> 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. </span></p> <p><span style="font-weight: 400;">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. </span>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.</p> <p><span style="font-weight: 400;">Average asset supply rates on DeFi lenders have increased slightly over the past month, according to data from</span> <a href="https://maker.blockanalitica.com/defi/"><span style="font-weight: 400;">Block Analitica</span></a><span style="font-weight: 400;">. 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</span> <a href="https://www.ustreasuryyieldcurve.com/"><span style="font-weight: 400;">4.7%</span></a><span style="font-weight: 400;"> rate at the moment.</span></p><br /><span class="copyright"><p>© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.</p> </span>