MakerDAO Approves Proposal to Increase DSR to 15%

MakerDAO, the organization behind the DAI stablecoin, has approved a proposal to raise the DAI Savings Rate (DSR) to 15%.

This proposal was passed through a vote and will officially be implemented on the Maker protocol in the early hours of March 11.

Key Changes

The notable changes in this proposal include increasing the borrowing interest rates for crypto-collateralized loans to a range of 15% to 17.25%.

Additionally, the most significant change is raising the Dai Savings Rate (DSR) from the current 5% to 15%. To offset this difference, the borrowing interest rate for DAI on the SparkLend platform will also be raised from the current 6.7% to 16%.

Market Response

This move is seen as a reaction to recent changes in the cryptocurrency and stablecoin markets.

Over the past three months, DAI has faced capital outflows, causing the total supply of the stablecoin to decrease by approximately 18%.

Analysts attribute this trend to the emergence of new types of stablecoins offering significantly higher returns compared to the 5% currently proposed by DAI.

For instance, Ethena's USDe stablecoin has quickly expanded its supply and market presence on lending platforms thanks to its Delta Neutral model, offering attractive yields.

Strategic Shift

In addition to raising deposit interest rates to attract users, MakerDAO is gradually shifting its collateral structure from government bonds to crypto assets. This strategy aims to optimize returns in the current growth phase of the market.