MakerDAO Upgrade Will Introduce Interest On Locked-Up Stablecoins

The new MakerDAO upgrade is set to introduce some of the new features on the platform including allowing the Basic Attention Token to be used as collateral in addition to Ethereum and also interest on locked-up stablecoins will be introduced as well so let’s get into it some more in the crypto news today.

The multi-collateral MakerDAO upgrade is even more comprehensive than the name suggests and alongside the new line of features, it will phase out the old single asset DAI as Sai which will require all of the users to migrate to the new token within a few months and the update will also introduce the interest on deposits.

MakerDAO makes a lot of the critical governance decisions via community votes and in addition to governance decisions, the holders of the platform’s coin Maker, the benefit from the dividends from the platform but also assume additional risk as insurers in cases the system fails. An example of one of these decisions is the vote for lowering the stability fee which will be equivalent to the interest rate on loaned-out stablecoin. The announcement made back on Thursday it was locked in today and the proposal lowered the fee by half a percent down to five percent. The vote also increases the maximum Dai supply to $120 million.

The community will also be required to vote for the specific assets to be used in the multi-collateral Dai. The decision came after a vote from earlier this summer that identified Ethereum, Basic Attention Token and Augur as assets prioritized for inclusion. The lead time to the decision was mostly used to conduct additional research one of the assets to proactively identify the potential issues. One such factor that was very complicated turned out to be Augur’s expected v2 update which could phase out the current REP Token and break the Maker smart contracts.

The Dai savings rate will be one of the major features of the upgrade and will allow the DAI holders to lock up their tokens and earn further interest in Dai itself potentially reducing the exposure to the market volatility.