MakerDAO proposes changes post recent bull cycle, details inside

ambcrypto.com:

Leading DeFi platform MakerDAO [MKR] has proposed changes to some of its vaults, in a bid to better align them with risk and incentivize growth. This move comes as borrowing rates on MakerDAO and other DeFi platforms have risen in recent months due to market bullishness and the surge in risk appetite.

 Read Maker’s [MKR] Price Prediction 2023-2024

Likewise, stablecoin borrowing costs have gone up, and centralized funding costs have also increased. In addition, general financial conditions have tightened due to persistent inflation, resulting in higher benchmark rates. Therefore, MakerDAO’s proposed changes were imperative to address these challenges and ensure the platform’s stability and growth.

The proposed changes include increasing the stability fee for low-rate vault types, such as ETH-C, WSTETH-B, and WBTC-C, to improve balance sheet utilization and efficiency. 

The stability fee for YFI-A is also proposed to be increased, while the debt ceiling for RETH-A and Compound v2 D3M is proposed to be increased to 20 million Dai [DAI] and 70 million DAI, respectively. 

As contained in the proposal, these changes are expected to drive additional protocol revenue while still maintaining acceptable cost levels for vault users. The proposed changes are expected to result in a 4.2% increase in annual protocol revenue, equivalent to approximately 1,750,000 DAI.

According to information from MakerDAO’s governance site, protocol members have voted overwhelmingly against Cogent Bank’s proposal to borrow $100 million from the decentralized lending platform.

Per MIP-95, which first appeared on the governance platform in January, Cogent Bank, a Florida-based commercial bank, had approached MakerDao with a proposal to borrow up to $100