MakerDAO, the entity overseeing the development of Maker, has greenlit an "executive vote" to implement temporary fee adjustments aimed at fortifying the protocol amidst dwindling Dai reserves, exacerbated by heightened market volatility and bullish sentiment toward stablecoins. The decision stems from a proposal by a member of the Maker Stability Advisory Board, BA Labs, in response to the Dai supply plummeting from $5 billion to $4.4 billion over the past week. MakerDAO seeks to streamline the approval process for stablecoin stability measures, particularly if users opt to redeem a portion of the $1.1 billion in real-world assets (RWA) held on the protocol, to mitigate potential liquidity issues arising from the use of RWA collateral.
Outlined in the proposal is the recognition that while the Maker DAO ecosystem remains stable, proactive measures are warranted to anticipate potential unforeseen user actions, given the present circumstances. The proposed adjustments encompass various facets of the Maker Vault, SparkLend DAI borrowing rate, Pegged Stability Module (PSM), Dai Savings rate, and Governance Security Module (GSM) suspension delays. Notably, the stability fee for diverse mortgage assets on the platform is slated to increase from 15% to 17.25%, while the annual percentage yield on SparkLend DAI Borrow will surge from 6.7% to 16%. These changes are slated to take effect on March 10 at 7:55pm UTC.
Additionally, MakerDAO intends to modify the PSM to institute a cooldown period for debt ceiling increases, reducing it from 24 hours to 12 hours. Furthermore, other planned adjustments include elevating the Dai savings rate to 15% and extending the GSM pause delay from 48 hours to 16 hours, facilitating swifter implementation of future alterations. Although these measures are temporary in nature, there is no automated mechanism for reinstating fees. While lauded as a step in the right direction, concerns regarding the scale and potential market disruption of these changes were voiced by blockchain R&D firm GFX Labs on the proposal's discussion platform.
