MakerDAO increases the rate of savings in DAI, thanks to the competitive landscape of DeFi

  • An executive proposal to increase was implemented DAI savings rate of up to 1%.
  • MakerDAO has been temporarily supplanted as the DeFi protocol with the largest TVL.

He follows his boss suggestions Decided on December 11th and executed on-chain on December 12th, MakerDAO [MKR] Implemented an increase in the DAI savings rate from 0.01% to 1%.

DAI is a decentralized stablecoin whose value is pegged to the dollar and backed by centralized stablecoins such as the USD Coin (USDC) and Pax Dollar (USDP) and other cryptocurrency assets such as Ethereum (ETH) and Wrapped Bitcoin (WBTC).

Read MakerDAO’s [MKR] Price forecast 2023-24

The savings rate was DAI release in 2018 to encourage DAI holders to peg their stablecoins to DAI savings rate contracts to generate interest.

However, the interest rate paid to DAI holders who lock DAI into the smart contract has been set at just 0.1%. With the new executive proposal, DAI depositors can now earn up to 1% interest on their DAI holdings.

In addition to the price increase, other changes implemented by the executive proposal included distributing 103,230 DAI to 20 recognized delegates, canceling the renBTC-A reset, moving 257.31 million SEK to MakerDAO’s TechOps core unit, and several parameter changes from the last MakerDAO Open Market Proposals Committee.

Sanea is temporarily dethroned

In intraday trading on December 12, leading liquid ETH trading platform Lido Finance saw its total value (TVL) surge to $6.45 billion to rank ahead of MakerDAO as the largest DeFi protocol by TVL.

The growth in Lido’s TVL was due to a jump in the Annual Percentage Rate (APR) to an all-time high of 10.21% a few weeks ago. Although this has returned to the 4% level, deposits on the platform continue to increase.

The recent spike in MakerDAO’s DAI may represent attempts by the DeFi protocol to incentivize existing depositors and drive new ones as the DeFi landscape becomes increasingly competitive.

At the time of publication, Lido Finance and MakerDAO TVL each have a valuation of $6.43 billion.

Source: Defillama

MKR refuses to return it

Changing hands at $604.43 at press time, MakerDAO’s native maker token has seen a significant drop in value over the past month. According to CoinMarketCap data, the price of MKR has fallen by 11% over the past 30 days.

Aside from the general decline in the market, the continued decline in the price of the MKR has also been attributed to the negative sentiment that has followed the asset since the demise of FTX.

Source: feeling

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