Maker DAO To Reduce Borrowing Fees And Increase Spark Debt Ceiling – Crypto News – Crypto News
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Maker DAO To Reduce Borrowing Fees And Increase Spark Debt Ceiling Maker DAO To Reduce Borrowing Fees And Increase Spark Debt Ceiling

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Maker DAO To Reduce Borrowing Fees And Increase Spark Debt Ceiling – Crypto News

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1 year ago

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Fees will drop 2 ppts to 13%, while the debt ceiling will rise to $2.5 billion from $1 billion.

MakerDAO, the decentralized lending protocol and issuer of the DAI stablecoin, has approved an executive proposal that brings a series of changes to the protocol.

Changes include a 2 percentage point drop in stability fees for ETH, stETH, BTC, and WBTC; raising SparkLend’s debt ceiling to $2.5 billion from $1 billion, funding $100 million into DAI liquidity pools on Morpho through Spark, decreasing DAI’s savings rate to 13% from 15%, among other changes.

Dropping stability fees today come less than a month after MakerDAO voted on March 10 to raise fees by 140% to prevent “DAI demand spike.”

“Maker stakeholders should understand that further changes are likely to be introduced in the near future, which is highly dependent on the development of market dynamics, including prices, leverage demand and external rate environment including CeFi funding rates and DeFi effective borrowing rates,” wrote BA Labs, which put forward the proposal.

The approved proposal also raises SparkLend’s debt ceiling to $2.5 billion from $1.5 billion, expanding the current $614 million borrowed on Spark.

In pursuit of their so-called Endgame, MakerDAO is also allocating $100 million DAI to deploy the Spark DAI Morpho Vault. The new DAI market will offer investors access to Ethena’s USDe and sUSDe stablecoins.

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