Temporary fee adjustment by MakerDAO

MakerDAO has approved a "Governance Vote" to implement temporary fee adjustments in order to strengthen the protocol as a result of changing market conditions. These adjustments aim to ensure that the MakerDAO ecosystem remains stable and secure, providing a reliable platform for users to engage in decentralized finance. By implementing these temporary fee adjustments, MakerDAO demonstrates its commitment to continuously improving the protocol and adapting to the dynamic nature of the crypto market. Users can have confidence in the resilience and effectiveness of the MakerDAO platform, knowing that measures are in place to address any potential challenges that may arise.

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MakerDAO has approved a “Governance Vote” to introduce temporary fee adjustments to strengthen the protocol due to increased market volatility and optimistic sentiment leading to a decrease in reserves for its stablecoin, Dai.

This proposal is in response to the rapid decrease in Dai’s supply from $5 billion to $4.4 billion in the past seven days, as stated in the proposal from BA Labs, a member of Maker’s Stablecoin Advisory Board.

MakerDAO Governance Vote announcement on X. Source: MakerDAO

In the proposal, MakerDAO plans to expedite the approval process for stablecoin collateral if users choose to exchange a portion of the $1.1 billion real-world assets (RWA) available on the protocol.While Dai is overcollateralized, using RWAs as collateral assets would pose potential liquidity issues if Dai selling operations persist.

While MakerDAO’s ecosystem is currently stable, it believes in anticipating unpredictable user actions.
Proposed measures include changes to the Maker Vault, SparkLend DAI borrowing rate, Peg Stability Module (PSM), Dai Savings Rate, and Governance Security Module (GSM) delay.

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