MakerDAO implements temporary payment adjustments amid market volatility
MakerDAO, the body responsible for the development of the MKR token, has passed a new executive vote to introduce a temporary payment adjustment to strengthen the protocol due to high market volatility and bullish sentiment, due to a reduction in the stock for its stablecoin Dai (DAI). .
The proposal comes on the heels of last week's sharp drop in dye supply from $5 billion to $4.4 billion, according to a proposal from BA Labs, a member of the Maker Stability Advisory Council.
MakerDAO intends to speed up the approval process for a stablecoin stability measure if they choose to take a portion of the $1.1 billion in Real-World Assets (RWA) available on the protocol. Despite Dai's over-collateralization, using RWA vehicles as collateral could create liquidity issues if Dai's sales continue.
The proposal reads:
“Liquid stable coin reserves and reserves extended to RWAs are more than adequate to sustain the increasing pressure caused by bullish market sentiment. The issue lies in the liquidity problem in stable coin exposures extended through RWAs.”
Although the Maker DAO ecosystem is stable, it recognizes the importance of anticipating unpredictable user actions. The proposed measures include Lafta Latency changes in Maker Vaults, SparkLend DAI Borrow Rate, PSM, Dai Savings Rate (DSR) and Management Security Module (GSM).
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The adjustments include increasing the stability fees from 15% to 17.25% on various securities registered on the platform. SparkLend also plans to raise DAI Borrow APY to 16% from the current 6.7%. The statement of changes is approved to take effect tomorrow, March 10, 2024, at 19:55 UTC.
Maker DAO plans to make PSM adjustments that will drop from 24 to 12 hours for raising the debt ceiling. Other measures to be implemented include increasing the die saving rate to 15% and speeding up the implementation of GSM Lafta delay from 48 hours to 16 hours for future adjustments.
While these adjustments are temporary, there is no automatic process to refund payments. GFX Labs, a blockchain research and development company, stated that the changes are in the right direction but expressed concern about their scale, fearing market disruption and disruption.
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