The MakerDAO community approved and executed a vote on Thursday to almost double the total debt ceiling, which indicates how much Dai (DAI) can be minted by its users. An announcement by the Maker Foundation posted on July 29 details the specific proposal to raise the debt ceilings for Ether (ETH), USD Coin (USDC), Wrapped Bitcoin (WBTC) and others. The vote passed at 8 a.m. UTC on July 30 and was executed at 10 p.m. UTC on the same day. Specifically, the proposal raised the debt ceiling for ETH by 80 million to 340 million total, which follows two similar …

U.S. crypto exchange Coinbase is now offering a way for users in six countries holding Dai to earn up to 2% back from rewards. According to a July 29 post on the Coinbase blog, Dai (DAI) holders in the United States, U.K., Netherlands, Spain, France, and Australia are now eligible to earn 2% annual percentage yield (APY) through its new program Dai Rewards. Coinbase said it would distribute payments daily to customers with at least $1 of Dai in their accounts, with initial rewards paid within five business days. The exchange launched a similar system for USD Coin (USDC) holders …

Compound, the Decentralized Finance protocol, reached the $1 billion dollar mark in funds borrowed from its protocol on June 13, with its top three markets being the DAI and USDC stablecoins followed by Ether (ETH). Currently, MakerDAO’s DAI takes the lead with 79.88% of value borrowed from its protocol. Stablecoins seem to be popular in Compound due to its COMP reward mechanism which gives users COMP tokens according to the dollar value borrowed. Compound allows users to deposit certain cryptocurrencies to earn interest and to borrow different tokens or stablecoins (useful for short-selling for example), while providing users with COMP …

The DeFi industry may be booming this year, but a new report shows earnings have fallen despite a huge surge in token prices. The second quarter token report from Bankless, a DeFi focused newsletter from Mythos Capital founder, Ryan Sean Adams, revealed that earnings fell by 42% in the second quarter, from $5.5 million in Q1 down to $3.9 million in Q2. The findings are somewhat surprising since most DeFi related tokens have been on fire recently. Dai Savings Rate decline blamed One big factor was MakerDAO shifting the stability fee (SF) down to 0% following the mid-March crypto crash. …

The price of MakerDAO (MKR) has rallied by roughly 30% over the past 24 hours, posting a new year-to-date high above $720 on some exchanges. The rally follows a late May spike of up to roughly 45% on the heels of MKR’s second Coinbase Pro listing. The past day’s high saw the price top 100% gains in two weeks. MKR/USD on Bitfinex: TradingView When measured against Bitcoin (BTC), the rally saw Maker break above its upper-range for 2020 and spike to a local top of 0.076 BTC, before quickly retracing to 0.060 BTC. MKR is currently trying to establish support …

The latest research from Flipside Crypto purports to disprove Tim Draper’s assumption that the advancements in DeFi will displace the U.S. dollar as the world’s reserve currency. The report starts off by quoting Draper: “The DeFi world is almost as technologically advanced as the dollar, and when it is, there will be no one who will want to accept politically manipulable currencies like dollars anymore.” Not fiat replacement The report focuses on two stablecoins: crypto-backed Dai (DAI) and fiat-backed USDC (USDC). It comes to the conclusion that stablecoin users are not looking to these instruments as replacements for the dollar, …

Crypto analysts AlfaBlok has published a report that claims the number of circulating Dai will need to increase by more than 70% each year in order for MakerDAO (MKR) to maintain its current capitalization of close to $350 million. According to AlfaBlok’s modelling, published May 5, the supply of Dai will need to exceed several trillion by 2040 — up from the current supply of roughly 100 million. The analysts said they had conducted “a fundamental analysis on this decentralized business based on discounted earning flows” and concluded: “The bottom line is that the current valuation implies very aggressive growth …

The decentralized finance lending platform Maker, like many crypto participants, suffered losses during the price collapse of “Black Thursday” on March 12. The price of Ether (ETH) declined by about 50% within 24 hours, triggering opportunistic profiteering as the Maker system became swamped with a huge volume of liquidations. In the aftermath of the crisis, Maker recorded losses totaling 6.65 million Dai (about $6.65 million) and has been forced to make sweeping changes to its governance and auction parameters. The project also added the stablecoin USD Coin (USDC) to its collateral pool. Amid the losses incurred by the project, Maker …

MakerDao (MKR) has published a new report that attempts to put the events of ‘Black Thursday’ into context — and recommends safeguards to ensure it can never happen again. On March 12-13 a roughly 50% crash in the price of Ethereum (ETH) led to the under-collateralization of the debt positions underpinning Maker’s Dai (DAI) stablecoin. The document, which was authored by ‘MakerMan’, said the crash drove liquidations that “effectively swamped” the system’s liquidators. With the ETH network suffering from congestion, users were unable to participate in auctions, resulting in a single bidder winning nearly 62,843 ETH for virtually zero DAI …

The on-chain activity for stablecoins has increased 800% in the last 12 months according to market intelligence firm TokenAnalyst. This growth is not surprising considering the overall growth of the stablecoin niche. The combined market cap for all stablecoins ranks third in size behind Bitcoin (BTC) and Ether (ETH) and ahead of XRP (XRP). Over the past year, $290 billion of stablecoins were moved on-chain — in March alone $50.9 billion in value was transferred versus $6.2 billion in April 2019. Source: TokenAnalyst Dai is most DeFi Despite the growth of the DeFi industry, more than half of the on-chain …

Nationwide lockdowns have become commonplace in a number of countries across the world as the global community tries to curb the spread of the novel coronavirus. For weeks on end, people have had to hunker down in their homes and practice social distancing in order to “flatten the curve” of COVID-19’s spread. Setting aside the dire consequences this has had on the global economy, the situation has forced people to come up with a wide variety of ways to entertain themselves. While this lockdown may have brought a new meaning to “Netflix and chill,” even watching TV series and movies …

A new class-action lawsuit against DeFi giant the Maker Foundation alleges that the company misrepresented the risks investors in the ecosystem faced, leading to catastrophic losses of collateral on MakerDAO on March 12. The allegations and who stands to gain The complaint, which was filed in the Northern District Court of California on April 14, accuses three entities affiliated with Maker of negligence and intentional misrepresentation before investors, or “collateralized debt position holders.” According to the complaint, collateralized debt position holders lost $8.325 million when the value of the Ethereum (ETH) that Maker held in collateral plummeted relative to the …