Summary
TLDR: MakerDAO’s DAI stablecoin has high demand, leading to a need for increased lending limits within the SparkLend platform. Maker voted to double the debt ceiling. The increase is driven by high borrowing demand, with DAI falling to 250 million. Ethena’s USDe stablecoin is offering high yields, impacting DAI’s peg. Rates are not sustainable in the long run, and traditional finance may push them back down.
Key Points
1. MakerDAO has a high demand for its DAI stablecoin product.
2. SparkLend, a sub-DAO within Maker, has issued so much DAI that it needed authorization to lend more.
3. MakerDAO voted unanimously to double the D3M maximum debt ceiling to 2.5 billion DAI to accommodate the growing demand for loans at SparkLend.