Crypto NewsAltcoinIn This Altcoin, Developers "Entered Bull Mode", Measures Are Being Implemented

In This Altcoin, Developers “Entered Bull Mode”, Measures Are Being Implemented

While the bullish effect continues to show in the cryptocurrency market, there are problems in the supply of some altcoins.

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MakerDAO, the organization behind Dai, a dollar-pegged stablecoin, has implemented a series of temporary fee adjustments in response to a period of “increased volatility and bullish sentiment.”

These changes are intended to support the protocol as it sees a significant decrease in Dai's reserves.

The proposal for these changes comes amid a sudden drop in Dai supply, which fell from $5 billion to $4.4 billion in the past week. The proposal was submitted by BA Labs, a member of Maker's Stability Advisory Council. Although Dai is over-collateralized, some of the collateral is tied up in real-world asset (RWA) instruments. This situation could lead to a liquidity squeeze if Dai sales continue.

“Liquid stable reserves and reserves transferred to RWAs are more than sufficient to sustain the increasing pressure created by potential bull market sentiment,” the proposal states. It also highlights the issue of a liquidity crunch due to exposure to stablecoins distributed through RWAs.

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A number of changes have been approved to stabilize the situation and will be implemented from today. These include increasing the Dai accumulation rate from 5% to 15% and increasing the stability fees of the main vaults by approximately 9-10% each.

While these changes are intended to be temporary, there does not appear to be an automatic mechanism to roll back the fees.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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