MakerDAO Is Preparing for the Worst (And That’s a Good Thing)

TL;DR

• MakerDAO voted to extend charges for his or her stablecoin, $DAI, to assist push reserves from 5% to fifteen% as they anticipate elevated promoting stress.

Full Story

MakerDAO simply carried out some charge adjustments to replenish on their DAI Token Reserves. 

Which could possibly be seen as actually annoying, however much like the pal who takes further time to pack a surplus of snacks for the highway journey…

95% of the time we’re actually blissful they did it. 

Right here’s what the stablecoin is as much as: 

MakerDAO runs the stablecoin $DAI, which is softly pegged to the US greenback. 

The DAO is understood for his or her structural security — they run tons of audits and analysis.

Which, in flip, makes a whole lot of traders belief $DAI to retailer long-term worth, or use it for day-to-day transactions of Actual World Belongings (RWA’s), like buying vehicles. Fairly cool.

All this stacks up, making sense of why MakerDAO is ‘over’ making ready. 

As we come right into a bull run, the volatility of the house is getting extra hefty, and cash like $DAI are seeing extra promoting stress. 

Suppose: extra individuals promoting stablecoins to purchase BTC/ETH/SOL and so forth.

Which brings us to the take away:

Rising reserves from 5% to fifteen% will assist maintain the coin if there’s a liquidity crunch (aka: a bunch of oldsters attempting to promote their $DAI tokens directly).

Who is aware of if that is wanted for the long run — both means, a strategic preemptive transfer like this could make or break a challenge when markets flip.

So this can be a sensible transfer by MakerDAO.