- MakerDAO now has a proposal to make some parameter changes.
- Lido was displaced by the protocol, allowing it to regain its place as the most popular DeFi protocol.
In a fresh proposalThe MakerDAO governance team’s Open Market Committee is asking for community approval to make some changes to the operation of Decentralized Finance Protocol (DeFi). This is in response to recent events in the lending sector of the DeFi ecosystem.
Read MakerDAO’s [MKR] Price Prediction 2023-2024
According to the proposal, due to the general decline in liquidity for smaller assets and Avi Eisenberg’s market manipulations that led to the siphoning of $114 million out of decentralized crypto exchange (DEX) Mango Markets, fewer long-tail assets are now accepted as collateral in the crypto lending world.
Long-tail assets refer to cryptocurrencies that are in circulation for a long time, but have little or no trading volume. DeFi protocols use these crypto assets to create liquidity and float pools.
Per the new proposal, MakerDAO’s Aave-DAI Direct Deposit Module (Aave D3M) is being proposed to be reactivated with a limited debt ceiling, and the Compound v2 D3M debt ceiling would be increased.
Stability fees for the protocol’s WSTETH-B vault type would also be normalized. In order to stop an increase in exposure, additional fees would be added on the USDP PMSM.
The Open Market Committee states that these changes, if implemented by the Open Market Committee will result in an increase in annual revenue of approximately 525,000 DAI as well as an increase in COMP Rewards for the Maker Treasury from the Compound D3M.
MakerDAO retakes the DeFi king’s place
MakerDAO was briefly overtaken by Lido Finance as the top liquid ETH staking site. In the last week, this caused a significant increase in the value of Lido’s governance token LDO.
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However, per data is not available as of writing DeFiLlamaMaker is now the top DeFi protocol, with a TVL in excess of $6.27 trillion. So far this year, MakerDAO’s TVL has grown by 4%.
Source: DeFiLlama
The protocol’s governance token MKR has also recorded some growth in its price. At $558.98, it was traded. This is a 10% increase from the beginning of the year. Data from CoinMarketCap revealed.
MKR’s steady increase in accumulation has been the reason for price growth since 2011. An assessment of MKR’s price movements on a daily chart revealed that the alt’s Relative Strength Index (RSI) and Money Flow Index (MFI) have been in an uptrend since 3 January.
They were seen above their neutral lines at 53.29 & 61.15, respectively, at press time.
Source: TradingView