The MakerDAO community agreed and voted on Thursday to almost double the total debt ceiling. This shows how much Dai (DAI) can be shaped by its users.
An announcement made by the Maker Foundation on July 29 detailed the concrete proposal to increase debt limits for Ether (ETH), USD Coin (USDC), Wrapped Bitcoin (WBTC) and others.
The vote was approved at 8 am UTC on July 30th and ran at 10pm. UTC the same day.
Specially, The proposal raised the ETH debt ceiling by 80 million to a total of 340 millionThis happens after two similar proposals that raised the 160 million cap in early July.
The limits for other currencies have also been increased Two USDC safes with different parameters were raised by 100 million to a total of 170 million, the WBTC limit was doubled to 40 million and the BAT limit (Basic Attention Token) was raised from 2 million to a total of 5 million.
This increases the maximum DAI offer to 568 millionAccording to DaiStats, 367 million have been minted so far.
The fixation does not fall off
The sharp rise is due to the fact that DAI has often traded above its $ 1 pair at a current $ 1.02 market price since Black Thursday’s events in March. The divergence was exacerbated by the earnings wars that started in June as they stimulated demand for DAI.
Since the maker system ensures that the DAI is minted and burned at a price of $ 1, creating a new DAI should drop the market price when the new offering comes into circulation.
Members of the maker community found that the project funded DAI miners essentially by setting ETH’s stability fee to zero, so vault builders could borrow DAI free of charge. DAI’s offering tripled as of early July, but the fixation was not fully restored.
A possible reason is the dominance of DAI in profitable agriculture. Around 50 million DAIs are currently insured in the balancer group to mine the YFII token, a clone of the YFI token that briefly dominated the liquidity of profitable agriculture. The composite DAI contract currently has 172 million DAI, a significant increase from earlier this week.
So, It appears that a significant portion of the DAI offering is used directly to earn rewards, rather than being sold at a higher price than what is achieved and rebalancing.
Plans to force fixation
The maker community is currently discussing a direct arbitration mechanism called Fixation Stabilization Module. This would create the opportunity to trade directly between the DAI and USDC at a forced 1: 1 rate.
However, the idea is to encounter some resistance as many have raised concerns about excessive dependency on the USDC and a fundamental change in the mechanism of DAI linking linked interventions that are backed by guarantees of market-based interventions.
Some other suggestions made in the community would include an income farming system where DAI miners are rewarded with new maker tokens (MKR).