Will the sudden drop in DAI supply cause a liquidity crisis? MakerDAO implements multiple fee adjustments, and annualized profit estimates skyrocket

In order to deal with the potential risks caused by the significant reduction of the stablecoin DAI, MakerDAO has recently implemented a series of fee adjustments, including increasing the DAI Savings Rate (DSR) to 15%, and increasing multiple core vaults by more than 8% to 10% stable rates. With the formal implementation of this proposal, what impact will it have on MakerDAO?

In recent times, the supply of the stablecoin DAI has dropped significantly. Maker Burn data shows that as of March 11, the total supply of DAI has fallen to $4.5 billion, the lowest level since August last year. In this regard, the proposal recently launched by BA Labs, the core development team of MakerDAO, pointed out that although the stablecoin reserves used to maintain liquidity and the reserves deployed to RWA are sufficient to maintain the pressure generated by potential bullish market sentiment, the problem lies in the stability of deployment through RWA The inherent liquidity crunch of the currency.

According to Dune data, Maker has invested more than US$1.77 billion in the RWA field. However, due to the characteristics of RWA products, the daily redemption of mortgaged crypto assets faces certain restrictions. This may lead to a continued reduction in DAI supply or trigger the risk of a liquidity crunch. At the same time, MakerEndgame data shows that the PSM (Peg Stability Module) stablecoin reserve launched for DAI liquidity has reached more than 790 million US dollars.

In response to the potential excessive DAI demand impact caused by further market volatility and bullish sentiment, BA Labs proposed a fee adjustment proposal, and after being voted on that day, it has been approved on 3 It was officially implemented in the early morning of March 11th. According to the proposal, key changes include increasing DAI’s savings rate from the original 5% to 15%, and implementing stability fee adjustments to its core treasury, which is expected to increase by approximately 9-10%.

In addition to approving an increase in the stable rates of mortgage assets such as ETH, WSTET and WBTC vaults to 15% to 17.25%, the savings rate of DAI has also been increased from the original 5% to 15%, making holding DAI more convenient attractiveness, thereby boosting demand and easing downward pressure on prices. At the same time, MakerDAO will also shorten the PSM cooling-off period for increasing the debt ceiling from 24 hours to 12 hours, thereby increasing USDC deposits and DAI minting throughput; the GSM suspension delay will be shortened from 48 hours to 16 hours for faster implementation. Future adjustments. In addition, Spark Lend, the lending market in the Maker ecosystem, has also implemented relevant changes, increasing the annual interest rate for DAI borrowing from 6.7% to 16%

According to the passing of the new interest rate proposal, Maker Burn data shows that in the past Within 24 hours, Maker’s annualized profit estimate increased by 81.8% to $182 million, and annualized fee revenue also increased by 97.2% to $437 million. Additionally, the PE estimate fell to 13.4 from 22.36.

In addition, affected by this, CoinGecko data shows that the Maker token MKR has increased by more than 33.2% in the past 24 hours. It is worth mentioning that in addition to boosting token prices through fee adjustments, MakerDAO founder Rune Christensen has also been selling tokens such as LDO and SHIB worth hundreds of thousands or even millions of dollars this month. It has continued to increase its position by over 1,900 MKR, with the current value exceeding US$5.14 million.

However, many practitioners have given different views on this plan. For example, Mindao, the founder of dForce, pointed out that the current funding rate continues to be high, and stablecoins continue to be sucked by arbitrage. If the minting volume cannot be stabilized, the income of the agreement will be ineffective.

"Since the income in the DSR system is 5% of the U.S. debt, if too much USDC rushes in and takes away 15% of the interest, which is equivalent to a subsidy of 10%, then the income of the agreement will decrease. Currently, RWA accounts for 25%, this part is posted, you need to pay attention to the changes in the share of this part.” Super Junze, the host of Benmo Community, reminded.

The above is the detailed content of Will the sudden drop in DAI supply cause a liquidity crisis? MakerDAO implements multiple fee adjustments, and annualized profit estimates skyrocket. For more information, please follow other related articles on the PHP Chinese website!