Blockchain

Story: MakerDAO might bring down Stability Fee of Dai To 5% Depending On Voting Results

By Maheen Hernandez

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On November 11, 2019, Maker will be exhibiting at the Singapore Fintech Festival 2019.  Maker is also organizing various events on November 11, 2019, across different parts…

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On November 18, 2019, the Maker Protocol is set to upgrade to the Multi-Collateral Dai (DCD).  The current version is called "Sai," and the new version will be called "Dai."

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The pace of migration is expected to be very slow.  Analysts opine that borrowers who are in the second level of lending platforms might not use the migration contract.

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The Interim Risk Team at Maker Foundation has introduced an executive voting system into the voting system.

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The MakerDAO is moving ahead with an Executive Vote to determine whether the rates which were decided in the previous governance poll will be established.

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The Dai Loan ceiling might be raised to $120 million if the votes are favourable.  Despite lending hefty amounts in Loan, they do not have the data of the significant…

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The stability fee was 18% in the beginning; after the voting, it might be determined whether the rates should go as down as 5%.  There are no standard interest rates so far.

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Steven Becker, President of Maker Foundation, stated, "MakerDAO has hit that limit, and no more [DAI] can be generated until that debt limit is increased."

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There is one significant risk associated with these loans.  These loans will automatically liquidate when the price of the Ether drops below a particular point.

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Becker further stated, in any migration process, “Like any migration, you’ll have a dual system running until some time has passed.”

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For instance, even if a small-cap token like TCAT token is migrating on their process, a dual system running for some time is unavoidable.

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