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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

The community of MakerDAO, one of the largest decentralized finance (DeFi) protocols, voted to increase the rewards rate for its DAI stablecoin to 1%.

Some 71% of voters favored a 1% hike, the highest available option, during the voting, which ended Thursday.

The rate increase will come into effect on Dec. 13, according to a statement from MakerDAO.

Increasing the rewards known as the DAI Savings Rate (DSR) means that investors can earn a 1% annualized return on their DAI holdings, giving an incentive for investors at a time when decent yields in crypto are scarce. The return is still much lower than what is available for traditional yield-generating assets such as U.S. government bonds.

MakerDAO issues the $5 billion DAI stablecoin, which is backed by more than $7 billion worth of assets in its reserves. The protocol is led by a decentralized autonomous organization (DAO), in which holders of the protocol’s governance token maker (MKR) can vote on proposals.

UPDATE (Dec. 12, 15:45 UTC): Adds date when rate increase will apply in third paragraph.

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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


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Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.