The Maker Decentralized Autonomous Organization (MakerDao) has proposed raising interest rates on its DAI stablecoin. Under the proposal, the DAI Savings Rate (DSR) will rise from 1% to 3.3%.
If the proposal passes, its consequences could be felt across the DeFi ecosystem.
What is the DAI Savings Rate?
The Dai Savings Rate (DSR) is a fundamental component of the Maker Protocol. It sets the rate of interest users to earn on their deposited DAI. Interest is accrued in real-time, accumulating from the system’s revenues.
The proposed rate hike was submitted by BlockAnalytica. It is part of a series of bundled-together changes to DAI’s stability-enforcing mechanisms. DAO members will now vote on the proposal.
DAI Returns Could Beat Other Stablecoins
With improved returns for DAI holders, the dollar-pegged stablecoin could soon offer a better return on investment compared to its Decentralized Finance (DeFi) peers. And the results…
