MakerDAO Set To Introduce EDSR To Boost DAI Savings Rate To 8%

• The MakerDAO community has concluded a poll to introduce the Enhanced Dai Savings Rate (EDSR).
• The EDSD would temporarily boost the interest rate for DAI stablecoin holders to as much as 8%.
• The DeFi lending protocol is aiming to increase the adoption and circulation of DAI with EDSR.

The MakerDAO community recently passed a governance vote that sought to introduce the Enhanced Dai Savings Rate (EDSR). The EDSR is a mechanism to temporarily boost the rewards for DAI stablecoin holders to up to 8%. The governance vote came amid declining market share and circulation of DAI.

On July 19, MakerDAO founder Rune Christensen published a proposal on the protocol’s governance forum, highlighting the need to increase rewards for DAI holders. According to the proposal, increasing the stablecoin’s yield would help the DeFi lender generate sustainable growth in new demand and capital inflows.

The governance vote concluded with more than 99.9% of the votes cast in favor of introducing the EDSR. The proposed changes will be merged into MakerDAO’s Stability Scope Framework, followed by a potential executive vote within the next 30 days. Christensen told the communit…

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