MakerDAO implements temporary fee adjustments amid market volatility
The adjustments include changes to Maker Vaults, SparkLend DAI Borrow Rate, the PSM, the Dai Savings Rate (DSR), and the Governance Security Module (GSM) Pause Delay.
MakerDAO, the body responsible for the development of the MKR token, has passed a new Executive Vote to introduce temporary fee adjustments to strengthen the protocol due to heightened market volatility and bullish sentiment, resulting in a reduction in reserves for its stablecoin Dai (DAI).
The suggestion comes in response to a rapid decrease in Dai supply from $5 billion to $4.4 billion in the last week, as outlined in the proposal from BA Labs, a member of Maker’s Stability Advisory Council.
In the proposal, MakerDAO intends to expedite the approval process for a stablecoin stability measure if users opt to redeem a portion of the $1.1 billion in Real-World Assets (RWA) available on the protocol. Despite Dai being overcollateralized, using RWA vehicles as collateral poses potential liquidity issues if Dai's selling continues.
...