MakerDAO, a decentralized finance (DeFi) platform and stablecoin issuer, has approved a proposal to increase the DAI Savings Rate (DSR) to 3.49% from 1%, providing additional incentive for investors to hold and lend DAI instead of rivals like USDC and USDT. Karpatkey, a treasury management provider to decentralized organizations, said the decision “resets the baseline interest rate across the DeFi ecosystem, spurring higher yields from lending stablecoins while making leverage more expensive.” The decision will take effect on June 19.
The executive vote also included a slew of other proposals that influence the composition of DAI’s backing reserve assets. MakerDAO effectively ditched Paxos Dollar (USDP) from the reserve by approving a decrease in its debt ceiling to zero, and onboarded the BlockTower Andromeda RWA vault that would allow the additional purchase of up to $1.28 billion in U.S. Treasuries for the reserve. In a separate poll concluded Thursday, MakerDAO voters also favored curbing Gemini Dollar (GUSD) in the reserve to $110 million from $500 million.
Originally a platform for leveraged long traders, Maker now positions itself as a bridge to real-world assets (RWA) yield, said Karpatkey.