MakerDAO is voting on increasing yield for the dai stablecoin

Quick Take

  • MakerDAO is voting to increase the amount of interest it pays on dai deposits.
  • Currently, 99% of the votes are currently in favor of increasing the dai yield to 1%.

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 SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

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.


© 2023 The Block. 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.

TAGS
DAI

About Author

Vishal Chawla is The Block’s crypto ecosystems editor and has spent over six years covering tech protocols, cybersecurity, artificial intelligence and cloud computing. Vishal likes to delve deep into blockchain intricacies to ensure readers are well-informed about the continuously evolving crypto landscape. He is also a staunch advocate for rigorous security practices in the space. Before joining The Block, Vishal held positions at IDG ComputerWorld, CIO, and Crypto Briefing. He can be reached on Twitter at @vishal4c and via email at [email protected]

Editor

To contact the editor of this story:
Tim Copeland at
[email protected]