MakerDAO is also voting to hike its DAI stablecoin interest rates!
Hi HODLers, Gamers and Hiveans,
I am old enough to remember days when interest rates on Stablecoins were very attractive (>5%+) to traditional finance (1-2%).
Lately, it has been the opposite, stablecoins interest rates have been quite depressed (under 2%) while the rates on your bank account savings and money market funds were reaching 5%+!
This is all about to change!
LThe community of Ethereum-based decentralized finance (DeFi) protocol MakerDAO will soon vote on a proposal to increase its Dai (DAI) stablecoin’s savings rate (DSR) to 3.33%.
The DAI Savings Rate was previously increased to 1% in December 2022.
https://twitter.com/MakerDAO/status/1662161508716150785
“It is a global parameter that needs to be adjusted often to deal with short-term changes in market conditions of the Dai economy,”
Other Stablecoins providers such as Aave and Compound were already providing Savings Rate around 2-2.5%.
This may seem like nothing but with the safest assets now yielding 3%, more risky assets should also increase in yields as a consequence.
Overall, I am glad to see that Crypto projects are acknowledging that we are competing with traditional finance for capital and therefore, we need to remain attractive.
What are your thoughts about this?
Stay safe out there!
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