DAI supply plummets and faces liquidity crisis! MKR rises 30% in a single week

The recent increase in market volatility and the bullish sentiment in the cryptocurrency market have led to a significant reduction in the supply of the U.S. dollar stablecoin DAI. To maintain the stability of the protocol, MakerDAO has decided to implement a series of changes.

Excessive demand leads to liquidity problems?

According to a proposal from MakerDAO member BA Labs, these changes are in response to the sudden drop in the supply of DAI from $5 billion to $4.4 billion in the past week.

Although the proposal states that DAI is still over-collateralized, a portion of that collateral is used to invest in real-world assets (RWA), which may bring risk of liquidity crunch.

The market value of stablecoins plummeted to 4.4 billion

This proposal Already effective, the main modifications include increasing the DAI savings rate from 5% to 15%, while implementing stability fee adjustments to the core vault, which is expected to increase by approximately 9-10%.

In the Maker ecosystem, the lending market SparkLend plans to make a series of adjustments, including adjusting the effective annual interest rate of borrowing and the linked stability module. Although these adjustments are marked as temporary, no plans have been announced for an automatic return to the original expense rates.

It is worth noting that the blockchain research and development company GFX Labs expressed their views when discussing the proposal.

"While these changes are directionally correct, they also note that the magnitude of a single action is quite large. They are concerned that this may lead to chaos and instability in the market."

MKR rose 30% in a single week

It is worth noting that the MakerDAO platform currency MKR rose 30% in a week, and was temporarily trading at US$2,689 at the time of writing.

The above is the detailed content of DAI supply plummets and faces liquidity crisis! MKR rises 30% in a single week. For more information, please follow other related articles on the PHP Chinese website!