The amount of DAI minted and deposited back into the Maker protocol has surged dramatically since the latest upgrade.
Nivesh Rustgi•
The supply of DAI has jumped by 4.88% or $217 million from $4.225 million before the activation of EDSR.
Of the total supply, 11.9% has been deposited in DSR contracts.
DAI rates only temporary
In the tweet introducing the EDSR update, Christensen emphasized the temporary nature of the feature, stating, "once more users arrive, the rate will go back down."
He had articulated in the governance proposal that the initiative aims to allocate the "increased stability fees" earned by Maker from its Vault users.
The MakerDAO stability fee is a variable interest rate that is charged to users who borrow DAI. The stability fees and DSR are variable rates set by the MakerDAO governance.
As the percentage of deposits in DSR contracts rises, the savings rate will reduce toward the protocol’s average stability fee of 3.19%.
Since the last quarter of 2022, the protocol’s revenue from stability fees and interest earnings has surged due to increasing exposure in real-world assets (RWA) like U.S. Treasury Bills and corporate debt.
RWA accounts for 52.5% of Maker’s revenue, according to a Dune dashboard.
