Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

MakerDAO (MKR) Votes to Increase DAI Rewards from 0.01% to 1%

Published Dec 02, 2022 09:00AM ET Updated Dec 02, 2022 10:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters MakerDAO (MKR) Votes to Increase DAI Rewards from 0.01% to 1%
 
COIN
+1.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

  • MakerDAO voted in favor of the proposal to hike the DAI reward rate from 0.01% to 1%.
  • 72% favorited an increase to 1%, 17% voted for 0.5%, and about 12% chose to leave the rate unchanged.
  • It’s unknown when the new changes will be implemented.

MakerDAO (MKR), the governing body behind the decentralized lending platform Maker, has voted in favor of a proposal to increase its flagship stablecoin DAI rewards from 0.01% to 1%.

The voting on the proposal ended on Thursday. Almost 72% favorited an increase to 1%, while some 17% voted for 0.5%. Around 12% said they wanted to leave the reward unchanged at 0.01%.

MakerDAO’s decision to increase the DAI rewards rate, known as DAI Savings Rate (DSR), comes amid plummeting yields across all decentralized finance platforms. For example, the second largest stablecoin USDC is also yielding around 1% but is issued by the centralized entity Circle. However, traditional assets like U.S. bonds are currently yielding over 4%.

MakerDAO has been recently looking for ways to generate more revenue from its $7.7 billion Peg Stability Module (PSM) reserve. In October, the DAO voted in favor of a proposal to invest $500 million in short-term US treasuries and corporate bonds. The investment, which is seen as a deviation from MakerDAO’s decentralized nature, is expected to yield around 4.5%-6% a year.

In November, MakerDAO also voted to move $1.6 billion of its reserve denominated in USDC to Coinbase (NASDAQ:COIN) Prime, Coinbase’s custody program that is expected to generate a 1.5% annual yield on MakerDAO’s deposit.

However, the DAO recently rejected crypto investment firm CoinShares’ proposal to invest up to $500 million in corporate debt securities and government-backed bonds with it. It’s unclear why exactly the DAO turned down the offer.

Maker is the largest decentralized finance platform in the market. It has $6.76 billion in total value locked, according to data from DefiLlama. Its flagship overcollateralized stablecoin DAI has a $5.2 billion market cap. The coin is backed by more than $7 billion worth of various assets in its reserves.

On the Flipside

  • It’s unclear when the rewards rate will officially be updated.

Why You Should Care

Maker is the largest decentralized finance protocol. MakerDAO’s decision to hike the reward rate for DAI deposits is a sign that the community cares about the future of Maker and DAI adoption.

You Might Also Like:

MakerDAO (MKR) Rejects Proposal to Invest Up to $500M in Bonds, Votes on Increasing DAI Rewards

See original on DailyCoin

MakerDAO (MKR) Votes to Increase DAI Rewards from 0.01% to 1%
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email