Maker DAO To Welcome Crucial Update To Wade Off Demand Shock
Highlights
- Maker DAO is set to implement key changes to prepare for any DAI demand shock
- The new changes will be implemented by March 10
- MKR is seeing impressive uptick from the passage of the announcement
Maker Dao, the body responsible for the development of the MKR token, has passed a new Executive Vote to bring new changes that will wade off any form of demand shock from the massive embrace sparked by the current bull rally.
Maker DAO and the Proposed Changes
Earlier on Friday, Maker DAO unveiled its plans to put forth a proposal for accelerated approval of a stablecoin stability measure should some users decide to withdraw a part of the $1.1 billion worth of Real-World Assets (RWA) that are available for redemption on the protocol.
While there is currently no tilt or pressure in its ecosystem at this time, Maker DAO believes it is pertinent to prepare for any form of erratic user behavior. As part of the measures it is proposing, it wants “adjustments to Maker Vaults, SparkLend DAI Borrow Rate, the PSM, the DSR, and the Governance Security Module (GSM) Pause Delay.”
The adjustments include raising the stability fees on different collateral assets registered on the platform from 15% up to 17.25%. In addition, it plans to increase the SparkLend DAI Borrow APY from the current 6.7% to 16%.
The latest Executive Vote has just been approved.
As a result, the following changes will be implemented within the Maker Protocol on March 10, 2024, at 19:55 UTC.
• Stability Fees for various collateral assets, including ETH and WBTC vaults, will… pic.twitter.com/UNUejjv8iI
— Maker (@MakerDAO) March 8, 2024
Maker DAO also plans to make PSM Adjustments that will provide a cooldown for Debt Ceiling increases to drop from 24 hours to 12 hours. Other measures that will be implemented include the increment of the Dai Savings Rate to 15% and the GSM Pause Delay from 48 hours to 16 hours for swifter implementation of future adjustments.
Impact of These Adjustments on MKR
In about 24 hours of the proposal being raised, it got approved, and the Maker DAO protocol is on track to implement these changes by March 10, 2024, at 19:55 UTC.
The implementation of the stability fees measure is important to help sustain the demand for Maker DAO-related products including the accumulation of its native token MKR. The passage of the proposal has ignited a major buying momentum among MKR proponents with the token jumping by 21% in the past 24 hours to $2,451.46 as the token also trailed the rally that followed BTC hitting a new All-Time High (ATH).
The coin has been on a major uptrend for the better part of the week, jumping as high as 15% to $2,481.
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