Maker DAO Votes on Dramatic Reduction of Stability Fees
Ahead of the launch of multi-collateral DAI, Maker is also reducing its stability fees.
The Maker DAO project is holding another vote to dramatically reduce stability fees. The vote, which ends on Wednesday, will have options to select a stability fee between 5.5% and 13.5%.
Following the vote, on Friday, MKR holders will hold an executive vote to approve the stability fee selected by the wider Governance vote. The stability fee aims to reduce the volatility of the DAI stablecoin, and continue the MRK decentralized finance system without causing liquidations or a run of withdrawals.
The Maker DeFi scheme currently issued and supports 84 million DAI, which are also showing decreased volatility and holding onto the $1 peg. A higher stability fee and problems keeping the peg are more worrisome for the Maker supporters.
MKR currenty trades at $498.40, on extremely thin volumes of around $6 million’s equivalent. MKR is mostly traded on Bitinka and other niche exchanges. DAI, on the other hand, is widely accepted in trading pairs. DAI is collateralized at around 324% currently, with a 150% minimum. The Maker DAO also contains more than 1.49 million ETH as collateral, in preparation for accepting multiple assets.
Maker DAO was the 20th busiest smart contract in the past month, according to Ethereum gas-usage statistics. Other DeFi smart contracts, such as Eth2DAI, and Compound, extend the sector.
ETH currently trades at $174.80, in the past weeks managing to keep close to the $180 range. ETH now shifts its use case to a tool of crypto-based lending and finance. DeFi growth was the biggest driver in the creation of distributed apps in the third quarter of 2019. The current growth of DeFi schemes has created some outlandish expectations for ETH:
Whether ETH will move to $15,000 is anyone’s guess. But DeFi has displaced the other use cases as a tool for ICOs.